Deduction under section 80C


Deduction under Section 80C for AY 2017-18 of

Income Tax Act, 1961


Features of Section 80C:

  1. Deduction under Section 80C is deductible from Gross total income.
  2. Deduction is available on the basis of specified qualifying payments/Contribution made by the taxpayer during the previous year.
  3. The gross qualifying amount would be allowed as deduction irrespective of the fact whether or not such amount is paid or deposited by the taxpayer out of his income chargeable to tax.
  4. The maximum amount deductible under section 80C, 80CCC and 80CCD(1) taken together cannot exceed Rs. 150000.
  5. Deduction under this section is available to Individual and HUF only.


Following are the qualifying deduction under 80C:

Sr No.Investment / Contribution / Subscription
1Life Insurance
2Tax Saving mutual Fund: ELSS
3Tax Saving FD
4Public Provident Fund
5Statutory PF
6Recognised Provident Fund
7Approved Superannuation Fund
810Yr or 15 Yr A/c Post Office Savings Bank
9National Savings Certificate
10ULIP of UTI (Unit Trust of India) or LIC mutual Fund
11Subscription to any units of any mutual fund or UTI  (Equity Linked Savings)
12Pension fund set up by mutual fund or UTI
13Deposit Scheme of national housing bank NHB
14Pension fund set by NHB
15notified deposit scheme
16Tution fees (any two children of individual)
17Cost of purchase or Construciton of a residential House
18Subscription of equity or debenture of Public Co. or any Financial Institutions
19term deposit i.e. FD for 5 yr or more
20notified bonds of NABARD
21Senior Citizen savings
225yr term deposit with post office


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