Deduction under Section 80C is allowed only to the following assessee from their gross total income:-

1. an individual, or
2. a Hindu undivided family

Maximum deduction u/s 80C is Rs. 1,00,000

Many types of investments are covered under section 80C but here I am discussing only those in which the assessee generally make investments.

  1. Life insurance premium (for himself, spouse & any child of such individual whether married/unmarried, dependent/non dependent)
  2. Provident Fund account (for individual only)
  3. Public provident fund (PPF) – maximum Rs. 1,00,000
  4. Unit linked insurance plan (ULIP)
  5. National saving certificates (NSC) & national saving schemes.
  6. Tution fees paid to any university, college, school or other educational institution situated in India for the purpose of full time education (dedution is available only for 2 childrens)
  7. Term deposit for a fixed period not less than 5 years with a scheduled bank as notified
  8. Five years term deposit with post office

Deduction u/s 80C is allowed upto Rs. 1,00,000. Hence a individual should invest in such a way to get maximum deduction u/s 80C. A person wanting to get deduction u/s 80C should plan early keeping in mind his/her PF deduction for the year & other regular investments. Invest more in those funds which gives benefit in present as well as future like provident fund , public provident fund etc.

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4 Comments on DEDUTIONS AVAILABLE U/S 80C

  1. A.K. DAS says:

    Sir,
    For the Assessment Year 2010-2011, the Maximum Deducted Amounnt U/S 80C is: 1,20,000/-. But, the amount as reflected here is: 1,00000/-!Please do up-to-date the position which would be beneficial for many….
    With thanks
    A.K.Das

    • Ranjeet Gill says:

      Yes A new section has been introduced U/S 80CCF under which Rs 20000 investment in infrastructure bonds are available & section 80 CCF is covered u/s 80C.

      so the total deduction available u/s 80 C is Rs 1,20,000.

      thanx

  2. jasmine says:

    For how long can the public provident fund be continued

    • ranjeet says:

      Hi,

      Public Provident Fund (PPF) can be withdrawn fully after 15 years. Also loans/partially withdrawn is available after 7th year .
      It can be continued for unlimited No. of year . Only withdrawl is barred as mentioned.

      Ranjeet gill

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