"Top 10 Tax-Saving Options Under Section 80C!"

The article provides a detailed overview of various investments and expenses eligible for tax deductions under Section 80C of the Income Tax Act, including EPF, PPF, life insurance premiums, ELSS, and more, each with a maximum deduction limit of ₹1,50,000. It highlights eligibility criteria and key features of these options to help individuals optimize their tax-saving strategies.


Investment/Expense Maximum Deduction Limit Eligibility Description
Employees' Provident Fund (EPF) ₹1,50,000 (combined under Section 80C) Salaried employees contributing to EPF
Contributions made by the employee towards EPF are eligible for deduction under Section 80C. EPF is a retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO).
Public Provident Fund (PPF) ₹1,50,000 Open to all individuals
PPF is a government-backed savings scheme with a tenure of 15 years. Contributions made to PPF accounts are eligible for tax deductions under Section 80C.
Life Insurance Premium ₹1,50,000 Policyholder paying premiums for self, spouse, or children
Premiums paid for life insurance policies can be claimed under Section 80C. The policy can be for the individual, their spouse, or their children.
Tax-saving Fixed Deposits ₹1,50,000 Individuals investing in 5-year fixed deposits
Investments in tax-saving fixed deposits with a tenure of 5 years are eligible for deduction under Section 80C. Interest earned is taxable.
National Savings Certificate (NSC) ₹1,50,000 Open to all individuals
NSC is a government-backed investment option with a fixed interest rate. The investment amount qualifies for deduction under Section 80C.
Equity Linked Savings Scheme (ELSS) ₹1,50,000 Individuals investing in ELSS mutual funds
ELSS is a type of mutual fund with a mandatory lock-in period of 3 years. Investments in ELSS are eligible for tax deductions under Section 80C.
Tuition Fees ₹1,50,000 Parents paying tuition fees for their children
Tuition fees paid for full-time education of children in Indian schools, colleges, or universities qualify for tax deductions under Section 80C.
Principal Repayment of Home Loan ₹1,50,000 Home loan borrowers
The principal portion of the home loan repayment is eligible for deduction under Section 80C. Interest repayment is covered under Section 24(b).
Infrastructure Bonds ₹1,50,000 Individuals investing in specific bonds
Investments in government-approved infrastructure bonds can be claimed as deductions under Section 80C.
Sukanya Samriddhi Yojana (SSY) ₹1,50,000 Parents/Guardians investing for a girl child
Contributions to SSY accounts for the benefit of a girl child are eligible for deductions under Section 80C. This scheme promotes savings for the education and marriage of girl children.


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