80c

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2010 what are the options open for me to invest u/s 80c

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

26 March 2010 In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act.

Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs. l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs. 30,000. The various investment options under this section include:

Provident Fund & Voluntary Provident Fund

Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution.

While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free .

Public Provident Fund

An account can be opened with a nationalised bank or Post office. The current rate of interest is 8%, which is tax-free and the maturity period is 15 years. The minimum amount of contribution is Rs 500 and the maximum is Rs 70,000.

National Savings Certificate

These are 6-year small-savings instrument, where the rate of interest is 8% and is compounded half-yearly . The interest accrued every year is liable to tax but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Equity-Linked Savings Scheme

Mutual funds offer you specially-created tax saving funds called ELSS. These schemes invest your money in equities and hence, return is not guaranteed. Money invested here is locked for a period of three years.

Life Insurance Premiums

Any amount that you pay towards life insurance premium for yourself, your spouse or your children can be included in section 80C deduction.

If you are paying premium for more than one insurance policy, all the premiums can be included. Besides this, investments in unit-linked insurance plans (ULIPs) that offer life insurance with benefits of equity investments are also eligible for deduction under Section 80C.

Home Loan Principal Repayment

Your EMI consists of two components, namely principal and interest. The principal component of the EMI qualifies for deduction under Section 80C.

Stamp Duty and Registration Charges For 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.

However, this can be done only in the year in the year of purchase of the house.

Five-Year Bank Fixed deposits

Tax-saving fixed deposits (FDs) of scheduled banks with a tenure of five years are also entitled for section 80C deduction.

Others

Apart from the above, things like children's education expenses that can be claimed as deductions under Section 80C. However, you need receipts to claim the same.

CA J M Pattanayak

CA J M Pattanayak (Expert)
Follow

26 March 2010 Please write specific question.
Do u wan to know what are the invest options in various funds ?
Or u wan to know generally investments ?
If generally then investments can be made in specific bonds available with various banks, PPF , in Govt bonds,NSc, in equity linked saving schemes ,Life insurance, Infrastructural development bonds etc.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
Follow

26 March 2010 There are various option to invest and get the deduction under section 80 C

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

26 March 2010 agree with experts

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

26 March 2010 agree with expert

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

26 March 2010 Thank you all for your agreement

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

tpksathyan narayanan

S D Kannan

ASIM ATREY AND ASSOCIATES

Tanishka Khandelwal

Vimlesh kumar

Subscribe Now

80c

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA