Tax Exemptions Available Under Section 80C

Posted In India - By NitiN Kumar Jain On Monday, January 10th, 2011 With 1 Comment

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If you are already in the service industry for some time then you must be aware of the income tax exemptions available under Section 80C of the Income Tax Act, 1961, India.

If you are not, then here is a quick guide for your reference and bookmark.

An employee is entitled to claim any single or multiple of the following exemptions under Section 80C “subject to a maximum amount of Rs.1,00,000-” per annum.

Particulars Maximum qualifying limit (Rs. Per annum)
Public provident fund (PPF) amount invested is eligible for rebate under this section. 70,000-
Insurance Premium rebate is available on the life insurance premium paid by an employee, on his life, his/her spouse / life of any child (including adult children married / unmarried). Maximum Benefit restricted to 20% of the sum assured. 1,00,000-
Contribution to Pension Fund plan of LIC / HDFC Insurance / ICICI Prudential etc for receiving pension. 1,00,000-
Repayment of principal towards housing loan repayment for the purposes of purchase or construction of a residential house property or stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee 1,00,000-
Fixed Deposit of nationalized banks (approved for rebate under this section – 5 years scheme) 100,000-
National savings  certificate
Investments in NSC –VIII issue are also eligible for rebate
Equity Linked Saving Schemes (Mutual Fund Units)
benefit of rebate shall be available even if contribution is in the name of spouse or child, to a mutual fund recognized under section 10(23D).
Post Office Savings
Amount deposited in CTD of post office savings bank scheme is eligible for exemption
Unit Linked Insurance Plan 1,00,000-
Tuition Fees 1,00,000- (For two children)