prpri Investments which qualifies for deduction u/s. 80C Investments which qualifies for deduction u/s. 80C

Under section 80C, you can invest a maximum of Rs 1.50 lakh (1 Lakh upto AY 2014-15) and if you are in the highest tax bracket of 30%, you save a tax of Rs 45000. The various investment options under section 80C include:

Public Provident Fund (PPF):  Interest earned is fully exempt from tax without any limit. Annual contributions qualify for tax rebate under Section 80C of income tax. Contributions to PPF accounts of the spouse and children are also eligible for tax deduction. Balance in PPF account is not subject to attachment under any order or decree of court. But, Income Tax authorities can attach the account for recovering tax dues. The highest amount that can be deposited is 1,50,000. Tax bracket for PPF is EEE (i.e. Exempt,Exempt,Exempt). So contribution is exempted under 80C, Interest earned is tax exempted and withdrawal is also tax exempted.

One can withdraw the investment made in 1st year only in 7th year. However, loan against investment is available from 3rd financial year. If liquidity is not an issue, you should invest as much as you can in this scheme before looking for other fixed income investment options.

Investment which Qualifies for Deducation Us. 80

Life Insurance Premiums:
Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.


Image courtesy of David Castillo Dominici at

Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C. Equity Linked Saving Schemes (ELSS) of mutual funds are diversified equity funds that have a lock-in period of three years and provide tax benefit. Since a major portion of the corpus is invested in equities / equity stock markets , the earning potential is higher (though at a higher risk) as compared to other tax saving investments. Investors can invest up to 1,50,000 in an ELSS fund and deduct the investment from their taxable income under section 80C of Income Tax Act, thereby effectively reducing their tax liability. Long-term capital gains and dividends received on these investments are tax-free in the hands of the investor as per the current tax laws.

Provident Fund (PF) & Voluntary Provident Fund (VPF) : PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF).

Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act.

Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

National Savings Certificate (NSC): National Savings Certificates popularly known as NSC is a saving bond , primarily used for small saving and income tax saving investment in India, part of the Postal savings system of Indian Postal Service (India Post). These can be purchased from a post office by an adult in his own name or in the name of a minor, a minor, a trust, two adults jointly.These are issued for five and ten year maturity and can be pledged to banks for availing loans.  The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

Pension Funds – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it means that the total deduction available for 80CCC and 80C is Rs. 1.50 Lakh.This also means that your investment in pension funds upto Rs. 1.50 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1.50 Lakh.

5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. An individual who has attained the age of 60 years or above on the date of opening of a/c or an individual who attained the age of 55 years or more and who has retired under VRS/SPL. VRS, can open an account individually or jointly with spouse. A retired personnel of Defence Services (excluding Civil Defence Employees) can subscribe to the scheme irrespective of the age limit subject to fulfilment of specificed conditions. Account can be closed after expiry of 5 years from the date of opening of account and account can be extended for next 3 years. Premature closure is permissible after one year subject to certain conditions. Deposits qualify for deduction u/s 80-C of Income Tax Act on the deposits made in new accounts opened on or after 8th December 2007.

Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Deposits in 5 year time deposit qualify for deduction under section 80-C of Income Tax Act on the deposits made in new accounts opened on or after 8th December 2007. The Interest is entirely taxable.

NABARD rural bonds:  The Finance Act, 2007 inserted clause (xxii) in sub-section (2) of section 80C of the Income-tax Act to provide that deposits made in  bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall be eligible for deduction under the said section. There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.

Unit linked Insurance Plan: ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments. They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.

  • Contribution for participating in the unit-linked insurance plan (ULIP) of LIC Mutual Fund (i.e. Dhanraksha plan of LIC Mutual Fund)
  • Payment for notified annuity plan of LIC (i.e. Jeevan Dhara, Jeevan Akshay New Jeevan Dhara ,etc ) or any other insurer.
  • Contribution for participating in the Unit-Linked Insurance Plan (ULIP) of Unit Trust of India.

Tuition Fees :- Any sum paid as tuition fees to any university/college/educational institution in India for full time education. Nowadays most of  income tax payee have to incur quite high payments towards the education fees of their children. The expenditure incurred on education fees is eligible for a deduction under Income Tax Act, So, if you are incurring expenditure towards education fee of your children, please check whether these are eligible for deduction under the IT Act.

Sukanya Samriddhi Account – Sukanya Samriddhi Account Scheme is a small deposit scheme for girl child, as part of ‘Beti Bachao Beti Padhao’ campaign, which would currently fetch yearly interest rate of 9.1 per cent and provide income tax deduction Under section 80C of the Income Tax Act,1961.  Interest on such account is taxable as Income from Other Sources.  –Sukanya Samriddhi Account – Tax & Other benefits
(Republished with amendments)

Read our Earlier post for detailed Analysis of Section 80C

All about deduction under section 80C and tax planning

(Updated on 22.06.2018)

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    Dear Sir
    I have sent one request earlier regarding impact of GST on existing Road contracts prior to implementation of GST from 01.04.2017 since GST was not loaded in the Contract price for earlier road contracts. The Employer is insisting for submission of GST invoice along with every Running Account bill but not releasing the GST part and only releasing the net bill amount and orally intimating that payment of GST part on old contracts is still not decided and waiting fior clarification from GST authorities. Please advice.
    Kishore Kumar S

  2. CA ANUP GUPTA says:

    Very Well written. In short, useful list of Investment. but you must sit before your financial Planner and CA before going for any Investment option. It requires Need based Analysis.




  4. Deepak says:

    I have invest a sbi mutual fund plan name sbi magnum global fund (regular g) and this is not an else can I show under 80 c and take tax benefit.

  5. Vishal says:

    If i invest “X” amount on my father’s name (who is dependent on me) in SCSS scheme (in post office). Its nothing but senior citizen saving scheme.

    Do i will get benefit under section 80C.

  6. Charu Chandra Gupta says:

    I made 13lakh investment into senior citizen saving scheme under section 80c and got deduction of 1.5 lakh could i carry forwarded balance amount 11.5 lakh for deduction under section 80c

  7. Charu Chandra Gupta says:

    I made a 13 lakh investment into senior citizen saving scheme under sec 80 c during AY 2015-16 where 1.5 lakh was available for deduction,can i carry forward balance amount of 11.5 lakh for deduction under sec 80 c in the AY 2016-17 also


    I am retired bank Employee. As per Agreement between Bank & Insurance Co a fixed amount is being debited by bank for Onward Remittance to Ins co where Bank is the Master policy holder & the as & when contingent benefit is being received through TPA . My question as my a/c being retired employee is debited should i get the benefit of SEC 80(D) of act excluding paid Service Tax during the year.

  9. Rahul Devgan says:


    Please clearify if I invested Rs. 5000 in Tax Saving FD under 80C. Then the interest which is reinvested will also come under 80C or not.

  10. V R RAJANEESH says:

    post office investments and its income tax benefit


    1) I monthly deposit Rs.3000 to post office account

    2) I invest Rs.36000 to Post Office Time Deposit in FY 2015-16

    Question :

    Shall we claim both of these contributions as deduction?
    If yes,
    how we can show this as a deduction from Total Income?
    How many year we can claim this,both monthly and Time deposit?

  11. Narendra Kumar Jain says:

    I deposited Rs300000/ (Rupees three lakhs) in my PF account upto Sept.,2015. I retired in Sept.,2015. On retirement all the available balace in my PF a/c as my contribution as well as Govt contribution was paid to me.
    Is my above contribution in PF A/c eligible for rebate under Section 80C for year 2015-16 ?

  12. Murali Krishna says:

    I have a query regarding SCSS 2004. In SCSS 2004 if a bulk amount of 15L is deposited for FY 2016-2017. can the tax deduction be claimed for SCSS 2004 for the year 2017-2018 also ?

  13. Shankargouda Patil says:

    Can my wife pay my future lic premiums and claim it benifit under 80c. So that i invest in other tax saving schemes we both are tax payers

  14. krishna kiriti says:

    It depends from whose bank account the money is being deducted. If its a joint account, the first holder can claim tax benefits provided the funds qualify under ELSS funds.

  15. Deepak says:

    I will be obliged for your clarification for my following query.


    > In this financial year 2015-16,I have invested Rs1.5lakhs with LIC under

    > “Varishtha Pension Yojana” earning interest of 9 percent per annum.Maturity

    > will be 15years


    > Can above investment be considered under Section 80 C ??

    > Pl clarify.

    > Regards

    > Deepak Desai


  16. Rajeswari Raj says:

    I opened PPF account in March 2001. It will be completing 15 years in March 2016. Can I withdraw the whole amount as i do not want to extend for another three years.
    Or can I withdraw only 50% of last preceding financial year?

  17. Deeksha says:


    i want to know that, can we pay more than Rs.20000/- in cash to a general insurance company? can we claim this amount as deduction u/s 80C ?

  18. V kumar says:

    On my retirement , I have withdrawn all my PF and VPF within the FY (i.e. by Nov’14)
    Now I want to know that whether I’m eligible for tax benefit for my PF and VPF deducted during the FY (April to Oct) while filling my ITR ?

  19. jitender says:

    sir i m a retired defence personal and want to invest my hard earned money to post office scheme scss. pls guide me how much i shud invest so that i can avail the tax benefits.
    i dont want that interest earned is taxed.

  20. Chandrasekharan DS says:

    I have a Senior citizen savings scheme deposit which will be maturing in the month of Aug 2015. There is a provision to extend the deposit for a further period of 3 years. In that case, please clarify whether I would be eligible for deduction u/s 80C for this financial year for that amount.

  21. sanjay says:

    i m a central govt. employee…
    is the employees contribution and employer contribution amt under NPS …is saving under rs 100000 …AY 2013..14?

  22. mr.muralirajdp says:

    Respected sir

    Please enlighten me regarding investing in ELSS in my minor daughter’s name & also in my name can i claim both the investment under 80 c ?

  23. Thomas says:

    The Fundamentals of the Indian Economy demand that since the cost of living has gone up considerably the present limits under Section 80 C are obsolete and need revision


    Hi ,
    I would like to know 10 year of RD A/C from BANK OF MAHARASHTRA bank can have 80C deduction. Please let me know

  25. ranjeet kumar says:

    I want to know that May i Claim tax deduction under 80C against Investment done in Reccuring deposit at State Bank of India.

  26. s.k.misra says:


    I would like to know, can a person claim deduction u/s. 80C, for the deposit under sukanya sambridhi account for his grand daughter. pls advice

  27. Devdatta says:

    Not clear with Infra bonds. Those deduction of Rs 20,000/- was under 80CCF over and above the 80C limit.
    Also, the tax deduction (80CCF) is not available now.

  28. Shobhnath Singh says:

    Dear Sir,
    I would like to know that there is any Tax Exemption on Tractor loan for Agriculture purpose?
    Thanks and Regards,

    Shobhnath Singh

  29. birendar says:

    Sir, I have investment in One of aatharv4u infra & agro ltd. paid the amount every months 1000 in the name of wife and it is in locking period for 3yrs so can i claim deduction u/s 80c, every year (3yrs) or it should be for 1 year in which i have paid. Pls advice. Thx

  30. chandrashekar P N says:

    Is it a must that FD in bank must be under tax saving scheme
    Or is it enough if the deposit for is for
    5 years . some banks do not give additional
    Benefit for senior citizens under tax
    Savings scheme.

  31. Himanshu says:

    Hi ,
    What would you suggest , what is the best option to invest for qualifying for 80C , so that our money is also saved and we don’t have to keep our money stuck for too long ?

  32. manimegalai says:

    whether housing loan taken in joint names of self & spouse are eligible for sec 24 & 80 C in the hands of both(property in the name of self)

  33. subhadip ghosh says:

    i want to know that if i purchased n.s.c along with my mothers name as first applicant and second name to me then if i able to tax deductions benefit under 80 c or not?
    Subhadip Ghosh

  34. sarath valsalan says:

    I would like to know if i can claim benefits for the amount put in PPF in this Financial year if i have closed the PPF.

  35. vimal says:

    Dear Sir,

    i want to know if i have taken lic policy in my name and my husband paid the premium amount then who can claim the tax benefit also want to know who cab pay premium for other if the policy in his/her name


    A person is getting full time education and taking home tuitions at spare time in addition to that he is having interest income, total income become taxable,He can claim the amount paid to college for himself , can he claim that amount u/s 80C?

  37. Kulbir Verma says:

    I have booked a flat which is under construction and I have taken a home loan on that flat. Can I avail tax benefit on that loan? What is actual law to avail tax benefit on home loan? Please clarify.

  38. Romesh says:

    My wife has a savings A/C in SBI and I wanted to do a FD for my son. Will I benefit from the tax exemptions as the A/C is not in my name?

  39. N.V.B.RAO says:


    I have made deposit in monthly recurring deposit with Post office. I would like to know, deposit may allow for deduction U/s 80C or not?

  40. R K Mundhra says:

    I want to deposit Rs 100000/ each to my two minor daughter’s P P F a/c. Please let me know if I am entitled to deduction u/s 80C and also am I entitled to interest on the said deposits.

  41. Venkatesh says:

    Hi Sir,

    I just want to know, if the interest income of Fixed deposit exceeds the exemption limit of 200000, say for example if I get 2.5 lacs as interest from FD. Can I get tax exemption under 80C, if I invest the rest 50000 in any tax saving mutual fund. That is till 2Lacs tax is nill, and if I invest the rest 50thousand in mutual fund, I can get tax exception under 80C on full interest amount?. Please help


  42. mitul shah says:

    hi sir,

    if i invest in 80 c through my son minor account in mutual fund elss scheme, i can claim in my 80c tax exemption limit

  43. SACHIN TYAGI says:


  44. Ganesh says:

    I am a salaried person and couldn’t make timely submission of about 40k proofs to claim 1lakh 80C benefits from office.
    Now, I have all proofs to claim complete 1lakh 80C benefits, but its too late for office submissions but instead it is time for IT returns.
    Can I account this during IT returns now and claim a refund ?

  45. Praveen says:

    can you please let me know if i can invest in Tax saver FD in my spouse’s name and claim exemption for it ?? i remember reading it somewhere in the internet.


  46. praveen says:


    i would like to know that 5 year post office recurring deposit is covered under tax rebate or no and if it covered then it comes under which section.

    this is in name of my wife

    can i take rebate of that or not.

  47. karteek says:

    An assessee is having a deposit with him, but is in the name of his sister, the amount was invested by him only in that deposit.
    Whether that assessee can claim exemption under section 80 c for the amount he deposited in that fixed deposit.

  48. sujata james says:

    I have a to know whether the amount invested in post office recurring deposit eligible for tax deduction under section 80

  49. Mahesh Kumar says:


    I had already submitted my investement proof in my company which i had declared in the beginning of the fin year 2012-13.

    But I have taken 2 different insurence policies in the last week of Feb 2013.

    Can i declare the 2 policies in next financial year 2013-14?

  50. ANAND says:


    I have investment in One of ELSS mf . & paid the amount last yr and it is in locking period for 3yrs so can i claim deduction u/s 80c, every year (3yrs)
    or it should be for 1 year in which i have paid. Pls advice.


  51. A K Bhat says:

    i am pensioner annual gross pension 3.10lac also sen citzn ins prem yearly 25000 am i taxable home consum loan instalment rs 5200 commutition ded 2300 rs

  52. KMURTHY says:

    dear sir,

    i have salry 28000 pm and monthly deduction pf can take exmpt tax or not and my wife is dependent on me so i paid monthly lic amont rs 2080 so i can take for exmpt tax…?

  53. Abhay says:

    can i claim deduction u/s 80C for principal Repayment for my housing loan for which construction is going on/property is purchased however not registered or possession not taken?

  54. ELAMARAN says:

    Dear Sir,

    i paid every month EMI Rs.3499/- for 2wheeler loan totaly 23month, incurred interest also, so can i get Tax exemptions. that has come under 80c? because am getting salary Rs.17600/-(Take home) per month.

    So please clarify and reply me


  55. chitrak says:

    dear sir / madam,

    U/s. 80 c FD in nationalized bank for fix for 5 years or more then 5 year allowed as deduction ?

    i have 1 FDR 50000/- for 108 month can i take benefit for deduction in f. y. 2011-12 ?

  56. CA Sunil Behl says:

    An error above. Infrastructure Bonds are not covered u/s 80C but the invested amount in these bonds is deductible u/s 80CCF upto Rs. 20000, over and above the deduction u/s 80C. Nevertheless, the benefit u/s 80CCF is not available from AY 2013-14, unless the benefit is extended by Budget 2013.


    Dear Sir,
    I have given money to my wife to invest in ELSS tax saver plan through Demat a/c
    in her name as she was working but remained on leave during the current FY.
    So she is not going to claim Tax exemption on the same investment from her employer.
    Can I claim Tax exemption on the same investment as the money has been given by me for
    investing in ELSS.

    Himanshu Shekhar

  58. Sudhir Harsule says:

    I have a taken education loan of Rs. 25 lacs for my son for his higher studies at University of California, Santa Barbara, California, USA from Credla Financial Institute for MS (Master of Science). Will the interest accrued is expempted from the income tax? if yes, under which provision?

  59. devendra kumar says:

    Is the tax rebate under 80DD, to the tax payee having a disabled dependent,  is given in lump-sum or the proof of expenses (80DDa) incurred on the medical treatment, rehabilitation, training  of the disabled etc.  or policy(s) for the benefits of dependent (80DDb) are required.

  60. Shibashis says:

    Hello Sir,
    My employer deducts an amount from my monthly salary as EPF contribution. When I inquired about VPF contribution, my employer said our EPF trust does not have that feature, hence I can not make VPF deduction directly from my salary.
    Please tell me in my case how can I enroll for VPF contributions.
    Is it possible to directly do the contributions via RPFO (regional provident fund office)?

  61. K K Nanda says:

    Under LIC premium, it is not mentioned whether premium amount paid for FY 2012-13 should be 10% of sum assured can be taken under 80C deductions. I was having opinion it is 20% earlier but from 01 04 12 it has become 10%. Will u please clarfy?

  62. Adithya says:

    Doubt on this:”Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction.”

    I heard to get the tax exemption for the wife’s life insurance it has to be paid by the husband through his cheque. Is it correct? What should be the mode of payment to get wife’s investment tax exemption.

  63. MAYUR says:


    I have a Recurring deposit of Rs 10000 per month upto 5 years at 9.5% interest rate.
    Overall my investement will become Rs 6lkhs and Maturity amount is Rs 7,68,753
    Iam getting the additional amount of Rs 1,68,753 after 5th year.

    Since Recurring deposit amount is taxable ,My question is , should i pay tax once after 5th year Rs 16,875.3(Assume 10% tax bracket).
    Or should i pay tax every year 5 times by calculating the additional amount for evey year.

  64. sagar datta says:

    i want tax planning for my cousin to save tax from housing loan and investments in life insurance scheme and to get maximum benifit by saving TDS from his salary.

  65. K.S Krishna Bhatta says:

    Is Peerless MF Child Plan eligible for deduction u/s 80c. And for HRA computation Purpose is D.A is also to be considered as part of the salary.

  66. Amit Surpuriya says:

    For Investing in All Infrastructure Bonds – Contact – Amit Surpuriya – 9850873688 – Pune
    KSHITIJ FINANCIAL SERVICESMutual Fund | Tax Planning | Infrastructure Bond | 54EC Capital Gain Bond | Medi-Claim | Company Fixed Deposit

  67. Neha says:

    If an employee retires from the services of the corporation and wants to maintain his/her PF account with the employer self managed trust.Is employer can retain the PF amount of the Employee on superannuation and if yes for how long??????

  68. sandeepa says:

    i would like to know that 5 year post office recurring deposit is covered under tax rebate or no and if it covered then it comes under which section please let me know at the earliest

  69. sandeepa says:

    i would like to know that 5 year post office recurring deposit is covered under tax rebate or no and if it covered then it comes under which section

  70. Dinesh says:


    I Have Opened FD with UBI (Tax Saving) for 5 years but i do not want to claim it under section 80C in the current FY 2010-2011.

    Can i claim this FD in the next financial year (2011-2012)


  71. Sachin Bhagat says:

    Hi, I am having two questions:
    1) I have signed an agreement for new flat in the month of Feb’11 can I claim this in the next financial year undet 80 C.
    2) I have availed a Home Loan in which I have my wife as co-applicant. What type of statement do I request from the Bank where I want to claim tax benefit for both of us. Is it only one statement provided by the bank and we can claim whatever proportion we are fine amongst us.

  72. Sachin says:

    I booked a flat which is under construction & paid a stamp duty & registration charges also. so can i take a benefit of that deduction for my income tax calculations

  73. Kalyanaraman says:

    Whether late payment fee paid to LIC also qualifies for 80C deduction, since the terms used are “any sum paid to ..keep in force” ?

  74. susheel says:


    I would like to know, can a person claim deduction u/s. 80C, of the Stamp duty & regn. chgs. paid even he has not taken a loan but self financed it

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