Section 80C of the Indian Income Tax Act allows individuals to claim tax deductions for specified investments and expenses up to a limit of INR 1.5 Lakhs in a financial year. Some of the common investments and expenses eligible for deductions under Section 80C include:
- Employee Provident Fund (EPF) contributions
- Public Provident Fund (PPF) contributions
- Life insurance premiums
- National Savings Certificate (NSC)
- Equity-Linked Saving Schemes (ELSS)
- Principal repayment on a home loan
- Tuition fees for children’s education
- National Pension System (NPS) contributions
- Sukanya Samriddhi Yojana (SSY) deposits
- 5-year fixed deposits with banks and post offices
It is important to note that the total deductions under Section 80C, along with other sections, cannot exceed the overall limit of INR 1.5 Lakhs in a financial year. It is recommended to consult a tax professional or financial advisor for specific guidance on how to maximize your tax benefits through deductions under Section 80C.