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Tax Saving Investments eligible under section 80C

Updated: Feb 4, 2021

Deductions under Section 80C of the Income Tax

Deduction under 80C
Tax Saving Investments

Every tax payer is always keen to know how to save taxes?, which of his investments are tax savers?, how can he earn more?, well we have tried to cover almost all most popular tax saving schemes and investments that may even create a wealth in your hands.

Income Tax Act provides various deductions up to Rs.1,50,000/- for the Investments under 80C/80CCC/80CCD.  However, aggregate deduction from section 80C/80CCC/80CCD is limited to Rs.1,50,000/- as mentioned in section 80CCE, also tax payer can claim additional deduction up to Rs.50,000/- for voluntary contribution in National Pension Scheme under 80CCD.

Well, now lets begin with our first deductible investment under income tax act.

80C: Deductions for Specified Investments and Expenses

Under this section deduction from gross total income is allowable in respect of contribution to various investments and expenses.

Investments allowable under 80C
Specified Investments under 80C

Lets first look on to which investments are allowable under this section.

Tax Deduction for investment in Public Provident Fund (PPF):

PPF is a long term Investment plan, that is backed by government for resident Indian. Any resident Indiancan open PPF account in his own name or in the name of his Minor Child.

  • Who is Eligible? : As mentioned above, PPF account can be opened by Indian Resident (Salaried and Self Employed). HUF and Non Resident can not invest in PPF.

  • Maximum Amount Deductible:  Maximum deductible limit from Gross Total Income is Rs.1,50,000/-

  • Tax Treatment: Interest on PPF or maturity amount received on PPF is fully exempt from Tax.