Maximize Tax Savings: Section 80C Offers Deductions Up to 1.5 Lakh for Approved Investments and Expenses
Section 80C of the Income Tax Act allows deductions up to 1,50,000 for various investments and expenses. Eligible investments include Provident Fund contributions, Public Provident Fund, life insurance premiums, Equity Linked Savings Schemes, and home loan principal repayments. Other qualifying investments are Sukanya Samriddhi Account, National Savings Certificate, infrastructure bonds, 5-year bank fixed deposits, Senior Citizen Savings Scheme, Unit Linked Insurance Plans, tuition fees for up to two children, 5-year post office time deposits, NABARD rural bonds, and certain pension funds. Violations of terms, such as premature withdrawals, may lead to previously claimed deductions being added back to taxable income.