Section I: Income Tax and Your Investments

• Ques: What all can be claimed under section 80C
• Ans: As a taxpayer, you are entitled to reduce your tax liability by making certain investments during the year. Section 80C is specifically meant for claiming deductions in respect of payments/investments such as contribution to Provident Fund, ULIP, ELSS, life insurance premium, and investments in NSC. The complete list of deductions is given below:
  • Contribution to provident fund
  • Life insurance premium for self, spouse or child
  • ULIP of UTI
  • ULIP of LIC Mutual Fund
  • ELSS of MF/UTI
  • Annuity Plan of LIC
  • Notified Pension Fund
  • 10/15 yr CTD account at Post Office
  • Deposit Scheme of PSUs Engaged in housing finance
  • Deferred annuity
  • Approved superannuation fund
  • National Savings Certificate (NSC)
  • Installment for purchase/construction of new residential property
  • Tuition fee of children
  • Investment in public company engaged in infrastructure
  • Fixed deposit in bank for tenure of 5 or more years
  • Bonds issued by NABARD