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80C Deduction:Check out the eligible instruments

This allows a deduction for specific investment, contribution, deposits or payments made by the taxpayer during the tax year.

Who is it available to?

All individuals and HUF (Hindu Undivided Family).

What is the amount of the deduction?

A total of Rs.1 lakh in aggregate across all eligible 80C instruments.

What are the eligible instruments?

The most commonly used eligible instruments towards the 80C deductions are:

  • Life insurance premium, including premium for a unit-linked insurance plan (ULIP)
  • Contribution to Public Provident Fund or Provident Fund
  • Investment in pension plans
  • Investment in Equity Linked Savings Schemes (ELSS) of mutual funds
  • Home loan principal repayment
  • Investment in Infrastructure Bonds, National Savings Certificates
  • Payment of tuition fees to for full-time education of any 2 children of an individual
  • Fixed deposit with any scheduled bank or post office for 5 years
  • Senior citizens savings scheme

Please check with your tax advisor in case from time to time there are other instruments that become eligible under 80C.


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Comments
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satya narayan said :
24/11/2011 		It is excellent:brief and to the point. However a very important information I could not find:valid for which Financial Yr or/and Ass Yr. Thanks. SNH
Raghvendra Pratap singh said :
11/05/2011 		Helpfull
padma said :
30/03/2011 		very good and helpful site
Suresh said :
21/05/2009 		Helpful