Section 80C deductions – Income Tax
Section 80C deductions
Income tax provides deductions from gross total income under section 80C towards investment/deposit in Life insurance premia, deferred annuity, contributions towards provident fund, subscriptions to tax saving equity & mutual funds etc. Section 80C deductions helps to reduce the taxable income. Deductions is only allowed if the amount is deposited or investment in the eligible schemes.
An amount of Rs 1,50,000/- is allowed for financial year 2021-22.
Nature of payment
The following payment or deposits are allowed under section 80C:
- Life Insurance: Contribution made to life insurance premium.
- Provident Fund: Contribution towards statutory provident fund or recognized provident fund.
- Public Provident Fund
- NSC: Subscription to National Savings Scheme
- SCSS: Amount deposited under Senior Citizen Saving Scheme
- SSY: Deposit in Sukanya Samriddhi Yojana
- Tuition Fees: Any sum paid as Tuition fees for full time education of upto 2 children’s of an individual. Donation and development fees are excluded.
- Repayment of Housing Loan: Any payment (part-payment or installment) towards cost of purchase or construction of a residential property to a housing board, co-operative society, etc
- 5 YearTime deposit in post office
- Fixed deposit with scheduled bank for 5 years or more
- Home Loan Account Scheme: Any sum paid as subscription to Home Loan Account Scheme
- Approved Superannuation fund
- ULIPs: Contribution in Unit-linked insurance plan (ULIP) of eligible institutions
- Payment in respect of non-commutable deferred annuity.
NPS Tier- II): Amount contributed towards NPS Tier II by a Central Government Employee.
Also read Best Ways to Save Tax for Salaried Individuals and Important documents needed for ITR filing
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