Deduction u/s 80C out of Gross Total Income
Rate of deduction [Section 80C (1)]
This
deduction shall be admissible only to an assessee, being an individual or
a Hindu undivided family.
The
amount of deduction shall be actual amount paid or deposited during the
previous year in prescribed saving schemes [to be called as qualifying amount for deduction u/s 80C] or Rs. 1,00,000 which ever is less.
Qualifying amount for deduction u/s 80C:
1. Employee or assessee's own contribution to
P.F.
If
S.P.F., fully qualifies [Govt., LIC, University, SBI, RBI etc.]
If
R.P.F., fully qualifies.
If
P.P.F., fully qualifies. Account can be
in the name of self, spouse or any child.
If
U.R.P.F., does not qualify.
2. Any amount contributed by employee towards
Approved Superannuation fund-Fully qualifies.
3. Life insurance Premium paid by employee or by
employer to assure life of employee, his spouse or children (minor or major,
married or unmarried) shall qualify up to actual premium paid or 20% of sum
assured whichever is less. Sum assured shall not include bonus or any
premium agreed to be returned.
4. Any amount deducted from the salary payable
by or on behalf of the Government to any individual in accordance with the
conditions of his service, for the purpose of securing to him a deferred
annuity or making provision for his spouse or children, in so far as the sum so
deducted does not exceed one-fifth of the salary.
5. Any amount contributed to keep in force a
contract for a deferred annuity, not being an annuity plan referred to in clause
(12). The persons on whose name
savings can be made are in the case of an individual, the individual, the wife
or husband and any child of such individual. Such contract does not contain a
provision for the exercise by the insured of an option to receive a cash
payment in lieu of the payment of the annuity;
6. Any amount
deducted by employer (Govt.) out of employee's salary under group insurance
scheme fully qualifies.
7. Any amount invested by an individual or
H.U.F. with UTI or LIC under Unit Linked Insurance Plan (ULIP) fully qualifies.
8. Any amount invested in NSC VIII issue fully
qualifies,
9. Interest Accrued on NSC VIII issue purchased
earlier is deemed to be reinvested hence fully qualifies.
10. Any amount deposited under notified deposit
scheme 92 fully qualifies.
11. Any amount paid to LIC under New Jeevan
Dhara, New Jeevan Dhara 1, or New Jeevan
Akshay, New Jeevan Akshay I, New Jeevan
Akshay II plans fully qualifies.
12. Any amount deposited with mutual fund under a
scheme of pension fund i.e., UTI retirement Pension Fund shall fully qualify.
13. Any amount deposited with nationalised bank
under home deposit scheme of National Housing Bank, fully qualifies.
14. Any amount deposited with an authority
engaged in housing development or town and
rural development fully qualifies.
15. Any amount deposited with housing finance
institutions fully qualifies
16. Any amount repaid under house building loan
taken from Govt., LIC, Bank, HDFC, HUPCO or other housing finance institutions
or employer. [Not from friends or relatives]
Amount
repaid as full price or installment of price of a house purchased from Govt. or
an approved agency shall qualify up to
actual amount repaid shall I qualify for deduction u/s HOC.
The
amount repaid must not include interest on loan or ground rent but shall include
stamp duty and registration charges.
17. Any amount paid as 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 :
(a) Any school, college or university or other educational
institution India,
(b) For the
purpose of full time education of any two children of the individual.
The amount, which shall qualify under this section, shall not exceed actual
amount paid as tuition fee for two children only.
18. Amount paid as subscription to equity shares
or debentures of any eligible issue. In
case such issue is notified by CBDT, the amount invested shall qualify for deduction
u/s 80C. The amount so invested in on which deduction is claimed shall not
qualify for exemption of capital gain u/s 54EA or u/s 54EB or u/s EC
19. Amount paid as subscription to any units of
any mutual fund. In case such unit scheme of mutual funds is notified by CBDT,
the amount so invested shall qualify for deduction u/s 80C. The amount so
invested in on which deduction is claimed shall not qualify for exemption of
capital gain u/s 54EA or u/s 54EB or u/s54 EC. The shares, debentures or units acquired under
(19) and (20) above cannot be converted into money for three years. In case such units or shares are co into
money before the expiry of three years the amount of rebate claimed shall become
as tax payable of the year in which these are sold or otherwise transferred.
20. Term
deposits with scheduled banks for a duration of at least 5 years as per the
scheme framed by Central Government.