If you know the secrets of investment, then amassing a sizeable fortune is only a matter of time, and a very short one at that. The section 80c of the Income Tax Act, 1961 lays it bare to the general public, thus making saving big possible from ordinary investments. To understand how that works, one needs to dissect the 80c of Income Tax. This section concerns with a miscellany of investment and expense options that qualify for tax deductions. So take a quick read before efiling income tax this year.
To be more specific, the investments specified in this section can make a person eligible to claim tax deductions as high as Rs.150, 000 yearly. The 80c announces both individuals as well as Hindu Undivided Families eligible for tax waiver through this act. Now that you know the basics, let’s move on to find out the investments that is dubbed by this act as tax deductible.
- Bank Fixed Deposit or FD is one which can be made in the bank, both public and private.
- Employee Provident Fund or EPF which is an employer’s initiative to raise a retirement fund for their employees.
- The NSC or National Savings Certificate is another saving scheme of investment that is eligible for tax waiver.
- Equity Linked Savings also come under the 80c investment options.
- The Sukanya Samriddhi Scheme which a parent or parents can create for their daughter’s/s’ future too falls in this category.
- For elderly people, the Senior Citizens Savings scheme is a tax deductible investment plan.
- Public Provident Fund or PPF is a scheme that qualifies a person for tax-free income of up to a certain sum yearly with profitable interest rates.
- Unit Linked Insurance Plan is another way of claiming a tax deduction for your investment.
- Last but not the least, one can also make Post Office Time Deposits to enjoy this privilege against small deposits.