Articles deals with deduction under Section 80C of the Income Tax Act and explains who is eligible for a deduction, Eligible Investments, Limit for deduction, who can invest for whom and time period for investment.
Background for Section 80C of the Income Tax Act (India) / What are eligible investments for Section 80C:
Provident Fund (PF) & Voluntary Provident Fund (VPF):
Public Provident Fund (PPF):
Life Insurance Premiums:
- Who has attained an age of 60 years or above on the date of opening of the account?
- Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.
- No age limit for the retired personnel of Defense services provided they fulfill other specified conditions.
There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.
Unit linked Insurance Plan:
So, where should you invest?
When to Invest?