15 March 2012


Deduction u/s.80C of Income Tax Act is available in respect of or payments made for life insurance premium, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

Persons to whom deduction is allowed : Individuals & Hindu undivided Family Only (HUF), other class of persons like firm, company are not allowed deduction u/s.80C.

Extend of Deduction : up to Rs.1,00,000/- of amounts eligible invested/payments/deposits mentioned below, along with payments/investments covered u/s.80CCC & sec 80CCD (refer sec 80CCE)
That is total deduction u/s.80C, sec 80CCC & sec 80CCD shall not exceed Rs.1,00,000/-

Investment/Payments Eligible u/s.80C: Some important deposits/payment are listed below
1. Payment of life insurance policy premium in name of ; in the case of an individual, the individual, the wife or husband and any child of such individual, and in the case of a HUF, any member of HUF.  Amount of premium shall be restricted to 20% of the actual capital sum insured.
2. Deposits in Public Provident Funds,
3. Contribution to employees recognised provident fund and approved superannuation fund,
4. Tuition fees paid to any university, college, school, or education institution situated in India for any two children of an individual,
5. Housing loan repayment installment, i.e. housing loan EMI
6. Stamp Duty and Registration Fee paid during the financial year in relation to purchase of house property,
7. Term Deposit with Scheduled Bank for period of five years,
8. Deposit in account under the Senior Citizens Savings Scheme Rules, 2004, i..e Senior Citizen Saving Scheme.
9. Deposit in five year time deposit in an account under the Post Office Time Deposit Rules, 1981,
10. National Saving Certificate VIIIth Issue. 
11. Subscription to Units of Mutual Fund approved by Board