Section 80C - Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

Section 80C: Claim up to ?150,000 deduction for life cover, investments, tuition and certain savings with lock-in rules

Individuals and Hindu undivided families may claim a deduction up to ?150,000 in computing total income for specified payments and investments such as life insurance premiums, deferred annuity, contributions to recognised and notified provident and pension funds, approved superannuation funds, certain government securities and savings schemes, specified mutual fund units, equity/debenture subscriptions in eligible issues, tuition fees, specified house construction/purchase payments and prescribed term deposits. Limits apply to premium percentages of sum assured for policies issued before/after specified dates, and prescribed lock-in periods. Early withdrawal, policy termination, transfers or sales within statutory periods can trigger disallowance of the deduction and deeming of earlier deductions as taxable income.