Section 80C and Section 80CCF

7 Apr    Tax Issue

Section 80C

Deductions under Chapter VI (sec 80C)

ü      Pension scheme (sec 80C), Pension scheme of LIC of India or any other insurance company

ü      NSC (sec 80C)

ü      Public Provident Fund (sec 80C), maximum Rs 70,000 in a year

ü      Employees Provident Fund & Voluntary PF (sec 80C)

ü      Children’s Education Tuition Fees (sec 80C)

ü      Housing loan principal repayment (sec 80C)

ü      Insurance premium & others (sec 80C)

ü      Equity Linked Savings Scheme (ELSS) of Mutual Funds lock-in period of 3 Years (sec 80C)

ü      Fixed Deposit with Banks having a lock-in period of 5 Years (sec 80C)

Please Note

Investments up to 1 lac in PF, VFP, PPF, Insurance Premium, Housing loan principal repayment, NSC, ELSS, long term bank Fixed Deposit, Post Office Term Deposit, etc. are deductible from the taxable income under sec 80C.

There is no limit on individual items, so all 1 lac can be invested in NSC, for example.

The only exception is PPF where the maximum investment is limited to Rs.70,000/-.

Section 80CCF

Long-term Infrastructure Bonds (sec 80CCF)

An additional Rs.20,000/- can be invested in long-term infrastructure bonds, taking total investment exemption to 1.2 lacs


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