Section 80c: Everything you should know | Tax Saving Scheme under Section 80c | Telugu

Section 80C of the Indian Income Tax Act allows individuals to claim deductions from their taxable income for certain investments and expenses up to a limit of Rs. 1.5 lakh per financial year. The purpose of this section is to encourage individuals to save for their future and invest in certain instruments that promote long-term financial planning.

Here are some of the popular investments and expenses eligible for deduction under Section 80C:

Life Insurance Premiums: Deduction can be claimed for the premium paid for life insurance policies taken for the taxpayer, spouse, and children. The maximum deduction allowed is up to 10% of the sum assured.

Public Provident Fund (PPF): Contributions made to PPF accounts held in the taxpayer's name, spouse's name or child's name are eligible for deduction under Section 80C. The interest earned on the PPF account is also tax-free.

Employee Provident Fund (EPF): Contributions made by the employee to EPF through salary deductions are eligible for deduction under Section 80C. The employer's contribution is also eligible for deduction, but only up to 12% of the employee's salary.

National Pension System (NPS): Contributions made by the taxpayer to NPS are eligible for deduction under Section 80C. The maximum deduction allowed is up to 10% of the salary or gross income.

Equity Linked Savings Scheme (ELSS): ELSS is a type of mutual fund that invests primarily in equities and is eligible for deduction under Section 80C. The minimum lock-in period for ELSS investments is three years.

Senior Citizens Savings Scheme (SCSS): SCSS is a savings scheme available to senior citizens aged 60 years and above. Investments made in SCSS are eligible for deduction under Section 80C.

Sukanya Samriddhi Yojana: This scheme is for the benefit of the girl child and provides tax benefits to the parents who invest in it. Investments made in Sukanya Samriddhi Yojana are eligible for deduction under Section 80C.

Repayment of Home Loan: The principal amount repaid on a home loan is eligible for deduction under Section 80C.

Tuition Fees: The tuition fees paid for up to two children's education in a financial year are eligible for deduction under Section 80C.

      There are also several other investment options and expenses that are eligible for deduction under Section 80C. However, it is important to note that the total deduction claimed under Section 80C cannot exceed Rs. 1.5 lakh in a financial year.