Section 80C is the most important way of saving taxes. It allows taxpayers to reduce their taxable income by making investments and some expenses and thus save on taxes they pay. Currently, section 80C allows deduction from gross total income (before arriving at taxable income) of up to Rs 1.5 lakh per annum on eligible investments and specified expenses.
- Home Loan Principal Repayment
- Life Insurance Premium
- Provident Fund Investment
- Investment in Equity Linked Savings Scheme (ELSS)
- Investment in Sukanya Samriddhi Account
- Investment in National Savings Certificate (NSC)
- Investment in Infrastructure bonds
- Investment in Fixed Deposits
- Investment in Senior Citizen Savings Scheme (SCSS)
- Investment in Five-year Post Office Time Deposit (POTD) Scheme
- Investment in NABARD Rural Bonds
- Investment Unit linked Insurance Plan (ULIP)
- Payment of Tuition Fees