“Section 80C” is an Income Tax Act by Govt. of India which lists a group of financial instruments which can help save money on income taxes. Currently Section 80C allows a maximum of ₹ 1,50,000/- INR before taxing the income.
80C has various subsections that can help save money on taxes. Below are the most popular tax saving instruments or schemes under this Section 80C.
Section 80C – Tax Saving Instruments
- Total amount on life insurance premium paid. That includes insurance premium paid for individuals as well as immediate family members.
- Housing Loan Principle repaid (only if the construction of the property is completed)
- Any stamp duty and/or registration changers paid.
- Children tuition fee paid.
- All kinds of provident funds (PF, PPF, VPF) subjec to individual rules on provident funds.
- Selected mutual funds ie, specially stated mutual funds designed to save tax on Section 80C
- Special saving schemes like Sukanya Samriddhi Account, National Savings Certificate, Senior Citizen Savings Scheme.
- 5 Year Fixed deposits and Pension Funds / Retirement Schemes.
- National Pension Scheme by Govt of India.
Finally on Section 80C, a total of ₹ 1,50,000/- can be saved on taxes when opted to one or more of the above mentioned instruments. When subsections combined, you can same further ₹ 75,000/- based on schemes like NPS and RGESS.