Deductions under Section 80C
Life Insurance Premium
Premium paid for self, spouse, and children (dependent or independent). Conditions: Before
April 1, 2012: Premium up to 20% of the sum assured. On or after April 1, 2012: Premium
up to 10% of the sum assured. For disabled individuals (Section 80U): Premium up to 15%
of the sum assured.
Employee Provident Fund (EPF)
Contributions made to EPF by salaried employees.
Public Provident Fund (PPF)
Investments in PPF with a maximum contribution of ₹1,50,000 per year.
National Savings Certificate (NSC)
Investments in NSC qualify for deduction. Interest earned also qualifies for deduction
(except for the final year).
Tax-Saving Fixed Deposits
Fixed deposits with a lock-in period of 5 years in a scheduled bank.
Sukanya Samriddhi Yojana (SSY)
Investments made for a girl child’s future with a maximum deposit of ₹1,50,000 per year.
Senior Citizens Savings Scheme (SCSS)
Investments made in SCSS, with a maturity period of 5 years.
ELSS (Equity-Linked Savings Scheme)
Investments in ELSS mutual funds with a 3-year lock-in period.
Principal Repayment of Home Loan
Principal portion of EMI for home loans qualifies for deduction.
Tuition Fees
Paid for the education of up to two children. Only tuition fees are eligible (excluding
development fees, donations, etc.).
Stamp Duty and Registration Charges
Expenses incurred for the purchase of a residential house.
Post Office Time Deposit
5-year time deposits made in post offices are eligible for deduction.
Unit-Linked Insurance Plans (ULIPs)
Premium paid for ULIPs qualifies for deduction under Section 80C.
Infrastructure Bonds
Investments in notified bonds issued by infrastructure companies or funds.
NABARD Rural Bonds
Investments in bonds issued by NABARD are eligible for deduction.
Pension Funds
Contributions to pension funds offered by insurance companies (e.g., LIC’s Jeevan
Suraksha).
Notified Annuity Plans
Investments in specific annuity plans notified by the government.
Important Notes:
1. Maximum Deduction Limit: The total deduction limit under Section 80C, 80CCC (Pension
Plans), and 80CCD(1) (NPS Tier-I contribution) is ₹1,50,000.
2. Additional NPS Deduction: Section 80CCD(1B) allows an additional deduction of ₹50,000
for NPS contributions.
