Section 80C of the Income Tax Act allows certain investments and
expenditure to be deducted from total income up to the maximum of Rs
1,00,000.
- Contribution to approved superannuation fund/public provident
fund/recognized provident fund/statutory provident fund. Provident fund
contribution should not exceed 1/5th of salary & public provident
fund.
- Payment of life insurance premium. It is allowed on premium paid on
self, spouse and children even if they are not dependent on father or
mother subject to a maximum of 20% of sum assured.
- Payment in respect of non-commutable deferred annuity.
- Unit linked Insurance policy of UTI/LIC.
- Subscriptions to National Savings Certificates VIII issues.
- Deposits with National Housing Bank.
- Principal part of loan taken for acquiring Residential House
Property; provided that the house should not be transferred within 5
years. Loan for land cost for residential house is also qualified.
- Subscriptions to schemes of PSU's providing long term finance for
housing, or of housing boards constituted in India for infrastructural
development of cities/towns.
- Notified annuity plan of LIC or of any other approved insurer.
- Units of Mutual Fund or UTI.
- Notified pension fund by UTI or approved mutual fund.
- Tuition fees (not including donation or development fees) towards
full-time education including play-school activities, pre-nursery &
nursery classes, of any 2 children of an individual, paid to University,
College or School in India.
- Investments in shares or debentures with a lock-in-period of 3
years, of approved public company exclusively engaged in infrastructure
facility or power sector.
- Subscription to the bonds issued by NABARD as specified by Central Government.
- Any sum deposited as 5 years time deposit under Post Office Term Deposit.
- Any sum deposited in Senior Citizen Savings Scheme.
- Any sum deducted from salary of Government employee (subject to
maximum 20% of salary) towards deferred annuity plan for benefit of
self, spouse or any children.
- Term deposit with scheduled bank for a period of not less than 5 years as per scheme notified by Central Government.
- Investing in units of notified mutual fund investing in approved
public companies engaged in infrastructure facility or power sector.
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