1. LIP. Contribution made by individual or HUF towards life insurance premium on the life of self, spouse and any child or any member of HUF — Sub limit to a maximum of 10% of the actual capital sum assured.
Section 10(10D) : Any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy
|is exempt||if premium payable for all the years during the term of the policy do not exceeds 10% of the actual capital sum assured. (For policies issued before 1-4-2012 read 20% instead of 10%)|
|is taxable||if premium payable for any years during the term of the policy exceeds 10% of the actual capital sum assured. It is taxable under the head ‘Income from Other Sources’|
|is exempt||where any sum is received on the death of a person even premium paid exceeds 10% of the actual capital sum assured.|
Note : The limit of 10% shall be taken as 15% for person who is a person with disability as referred to in section 80U or suffering from disease as specified in section 80DDB.
2. ULIP: Contribution made by individual or HUF in Unit Linked insurance Plan (ULIP) of UTI or mutual fund registered in India. (self, spouse and any child or any member of HUF). (Share market).
a. Investment made in units of ULIP deduction u/s 80C is available.
b. Lock in period 3 years. Lumpsum withdrawal is exempt u/s 10(10D).
3. FIXED DEPOSIT: As a term deposits for a fixed period of atleast 5 years with a scheduled bank and which is in accordance with a scheme framed and notified by the Central Govt. EET
4. FIXED DEPOSIT: 5 year time deposit by an individual in an account under Post Office Time Deposit Rules 1981. It includes Post Office (CTD) Scheme. (Cumulative Time Deposit)
5 . ELSS: Subscription by individual or HUF to any equity linked saving scheme of UTI or mutual fund. [Lock in period is 3 years] (Share Market).
a. Investment made in units of ELSS deduction u/s 80C is available.
b. Income from units of ELSS is exempt from tax u/s 10(35).
c. Lock in period 3 years. Profit arising on sale of units of ELSS is exempt from tax u/s 10(38) being LTCG STT paid.
6. PF: Contribution made by individual to Statutory Provident Fund (SPF) or Recognised Provident Fund (RPF).
7. PPF: Contribution made by individual or HUF to 15-year Public Provident Fund (PPF) (self, spouse and any child or any member of HUF). [not being repayment of loan]
8. PF: Contribution by an individual towards an approved superannuation fund.
9. NSC: Subscription by individual or HUF in National Saving Certificate VIII issue (including interest accrued which is deemed reinvested is also eligible for deduction). However schemes like NSC VI & VII issue and NSS 1992 have been discontinued w.e.f. 1-11-2002.
10. As subscription to shares or debentures or bonds of an issue made by an Indian public company or a public financial institution including UTI and mutual fund and the entire proceeds of the issue is utilised wholly and exclusively for the purposes of developing, maintaining and operating an infrastructure facility or for generating or / and distributing, power or for providing telecommunication services whether basic or cellular.
11. HOUSING LOAN: Any payment made towards the cost of purchase or construction of residential house property (RHP) the income of which is chargeable under the head ‘Income from House Property’. The payments are : (Lock in period 5 years)
a. Repayment of loan to Central or State Govt., any Bank including co-operative bank, LIC, NHB, the assessee’s employer which is a public company or a public sector company, University, local authority, cooperative society.
b. Repayment of loan to any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or
c. Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee.
| Repayment of housing loan |
allowed as deduction u/s 80C
| Interest allowed as |
deduction u/s 24
|Maximum Deduction||Max 1,50,000||Max 30,000 / 2,00,000|
|Pre period||Pre construction principal payment |
not allowed as deduction.
|Pre construction interest allowed as deduction in 5 equal installment|
|Basis||Deduction allowed in the year of payment.||Deduction allowed on accrual basis|
|Lender||Loan can be taken from banks, FI’s||Loan can be taken from any person deduction allowed.|
|Deduction allowed from||GTI||NAV|
|Left over deduction cannot be carried forward.||Left over deduction is treated as HP loss and can be carried forward for 8 AY’s.|
12. TUITION FEES: Tuition fees of maximum 2 child for full time studies (excluding any payment towards any
development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
to any university, college, school or other educational institution situated within India.
13. Deposits in an account under the Senior Citizens Savings Scheme Rules 2004. [Age atleast 60 years or certain conditions 55 years]
14. Any contribution made by individual or HUF as subscription to home loan account scheme of national
Housing Bank (NHB)
15. Contribution to any notified pension fund set up by the National Housing Bank or Mutual fund or UTI.
16. Subscription made by individual or HUF to any such deposit scheme of a public sector company or an
approved authority which is engaged in providing long-term finance for construction or purchase of houses
in India for residential purposes.
17. Investment in Sukanya Samriddhi Scheme [सुकन्या समृद्धि] FA 2015 [EEE]
|(i)||The investments made in the Sukanya Samriddhi Account Scheme 2014 will be eligible for |
deduction under section 80C of the Act.
|(ii)||The interest accruing on deposits in such account will be exempt from income tax u/s 10(11A).|
|(iii)||The withdrawal from the said scheme in accordance with the rules of the said scheme will be exempt from tax u/s 10(11A).|