Question

Explain the provision in respect to Deduction claimed under Section 80 C of the Income Tax Act, 1961? Apart from Insurance Premium, write any other six Investments, which are eligible for deduction under aforesaid section?

Answer 1

Individuals and Hindu Undivided family (HUF) are eligible for deduction under Section 80 C, from gross total income equivalent to investment made of Rs. 1,50,000 whichever is less.
Apart from Insurance Premium, following are the Investments which are eligible for deduction u/s 80 C of the Act:
1. Any contribution made by an individual towards statutory provident fund and recognized provident fund.
2. Any contribution to a PPF by individual or HUF.
3. Subscription to National Savings Certificates
4. Contributions for participation in any notified Unit-Linked Insurance Plan of the LIC Mutual Fund.
5. Only tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter, to any university, college, school or other educational institution situated within India for full time education and allowed only for 2 children of such individuals.
6. Any installment or part payment towards the cost of purchase/construction of a residential property to a housing board or co- operative society (or repayment of housing loan taken.