Top 10 Investment Options Under Section 80C

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70 NEWS JAPAN - hen it comes to income tax saving, the most commonly used section for claiming tax exemption is section 80C of Income Tax Act of India. This section of Income Tax Act allows maximum deduction of up to Rs1, 50,000 and can be used by both salaried individuals and taxpayers of all categories regardless of their source of income.

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A tax deduction is permissible for investments from total taxable income in a specific instrument and this exemption can be claimed by a taxpayer under section 80C. There are various tax saving instruments by which tax benefits under this section can be availed.

Keeping in mind the senior section of the society, the Senior Citizen Saving Scheme was introduced by the Govt. of India in order to secure the future of a person after retirement. In this scheme, the investment can only be made by senior citizens, and it provides quarterly interest payout instead of compounded interest. The investment made under this scheme is also eligible for tax deduction under section 80C of Income Tax Act, 1961.

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Health insurance protects and supports you and your family in case of any health debacle or a mishap. It not only covers all the medical expenses in the hour of need, but also helps you to save on taxes as the premium paid towards health insurance policy is eligible for tax exemption under section 80C. Whether you invest in health insurance policy for an individual or pick a family floater, the annual premium paid by you can be applicable for tax benefit.