Tax Consultancy

WHAT ARE THE VARIOUS TAX-SAVING OPTIONS UNDER SECTION 80C?

Tax saving options under Section 80C
There are several options you can choose to save tax under Section 80C of the Income Tax Act. These include:

1. Equity Linked Saving Scheme (ELSS)
2. National Pension Scheme (NPS)
3. Unit Linked Insurance Plan (ULIP)
4. Public Provident Fund (PPF)
5. Sukanya Samriddhi Yojana (SSY)
6. National Savings Certificate (NSC)
7. Fixed Deposit (FD)
8. Employee Provident Fund (EPF)

Please note that these benefits are available if you have chosen the “Old Tax Regime.” Let’s look at these tax saving investments in detail.

Buy life insurance plans
Section 80C of the Income Tax Act provides for premium payments, and Section 10(10D) provides for the sum promised received at maturity or early death of the insured, whichever occurs first.

Buy a health insurance policy
People can claim tax deductions under Section 80D for the portion of their annual taxable income spent on premium payments. Depending on the age of the covered, different sums are exempt from such income tax computations.

Only certain pension funds under section 23AAB are eligible for exemptions of up to Rs 1.5 lakh under section 80CCD(1).