How to Save your Taxes by Investments as per Sec 80C

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Today we are going to tell you how you can save your Income tax by investing in some schemes as per 80C, 80C is a group of multiple Investment scheme, so we are going to tell you each of them plus the guidelines to be followed to get deduction as per section 80C.

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1. Deduction through salary like: PF / VPF / Med Insurance (80D):

Inputs are directly taken from salary deductions. No need to submit any documents for these deductions, SO no proof required to be submitted.

2. Life Insurance Premium ( 80C )

All premium receipts issued by the Insurance Company.

Guidelines to be followed :-

• Policy from any approved company by IRDA (Insurance Regulatory & Development Authority)
• Tax benefit on premium payment will be restricted to max. of 10% of the sum assured (if the policy is taken on or after April 01, 2012)
• Tax benefit on premium payment will be restricted to max. of 20% of the sum assured (if the policy is taken prior to April 01, 2012)
• Late payment fees charged will not be considered as premium paid.
• Receipts should be of the current financial year only .
• Policy can be in the name of individual, spouse, & children.
• Any premium due and paid after the proof submission due date need to claimed by the individual at the time of filing return with the I T Dept.

3. PPF : Public Provident Fund ( 80C )

Guidelines to be followed :-

• Public Provident fund can be in the name of individual, spouse & children.
• Maximum contribution allowed under this scheme is Rs.150000 /-
• Any premium due and paid after the proof submission due date need to claim by the individual at the time of filing return with the I T Dept.
• Receipts should be of the current financial year only

4. Fixed Deposit in a Scheduled Bank ( 80C )

• Term deposits for a minimum period of 5 years with a scheduled bank are eligible for deduction.
• Certificate should be in the name of employee

5. ULIP / Mutual Funds / ELSS ( 80C )

• Receipts / Statements / Bonds / Certificates should be of the current financial year only
• Any Installment / SIP due and paid after the proof submission due date need to claimed by the employee at the time of filing return with the I T Dept.

6. Infrastructure Bond/ NSC ( 80C )

• Receipts / Statements / Bonds / Certificates should be of the current financial year only.
• Infra Bond Term should be > = 3 years
• Any Installment / SIP due and paid after the proof submission due date need to claimed by the employee at the time of filing return with the I T Dept.

7. Children Education fees

• Tuition fees paid supported by receipts issued by the school, college, university or educational institution.
• Only amount mentioned as ‘Tuition Fee’ in the fee receipt will be considered for deduction
• Receipts should be of the current financial year only
• Donations, Capitation fees, Uniform fee, Sports fee etc are not allowed

8. Deposit under Senior Citizens Saving Scheme

• Receipts should be of the current financial year only
• This is applicable if the employee is a Sr. Citizen (age = > 60 years)

9. Five Year Time Deposit Scheme in Post Office

• Time deposit for a period of 5 years with a post office is eligible for deduction.
• The monthly deposits into Recurring Deposit Account (in Post Office) will not be considered

10. Housing Principal Registration/ Stamp Duty ( 80C )

• Provisional Certificate : – should be of the current Financial Year
• Sale Deed / Stamp Duty : – should be of the current Financial Year.

11. Sukanya Samriddhi Account Deposit Scheme (SSAD) ( 80C )

• Maximum deduction is allowed under this section is within the overall Sec 80C limit of Rs.150000/-.
• Sukanya Samriddhi account should be in the name of the daughter only.
• Receipts should be of the current financial year only

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