Here are the tax-saving investments under section 80C

The rules for both EPF and VPF are the same, however, VPF is an additional contribution which falls under section 80C. The interest earned on both the investments are tax exempt on maturity. The government is yet to announce the interest rate on the EPF for FY19.

Mutual funds have designed these schemes to help you save tax under section 80C. The investment here comes with the shortest 3-year-lock-in compared to other investments under section 80C. Tax benefits are offered to a limit up to Rs 1.5 lakh, but there is no upper limit when it comes to investing in this scheme. The scheme has a potential of earning you high returns compared to other tax-savers under section 80C, but the long-term gains earned are taxed.

This tax-saving instrument comes with a 5-year-lock-in and as little as Rs 100 can be invested, there is no upper limit to invest in this scheme. In its 5-year lock-in the interest earned in the first four years is reinvested and in the fifth year, it is paid back to you along with your other investments. The interest in the new issue of these schemes is revised quarterly by the government.

The scheme is for the benefit of senior citizens, so any individual 60 and above is eligible to invest under this scheme. If you or your parents are above 55 but less than 60 the other option you have is to invest under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme. The catch here is, the account should be opened within three months of the retirement date. The current annual rate of interest is payable quarterly instead of a compounded quarterly rate. Here again, the interest is revised in each quarter and if you don’t claim the interest it won’t earn you more interest but would be subject to tax.

Fees paid to a school, college or university in India only, is taxed under section 80C. Paying your children’s tuition fee is an expenditure and its tax deduction eligibility is sure to help you save tax.

Any bank fixed deposit with a tenure of five years and falls under section 80C would help you save tax. The interest earns over the years would be subject to tax.

You can open an account on your daughter’s behalf till she is 10 years old. The amount deposited falls under the section 80C eligibility. The account can be opened for two girls and if you are blessed with twins an additional account can be opened for your third child, however, it would come with conditions attached. Your contributions should be consistent through 15 years, and the maturity of the account would be after 21 years. So you don’t have to make any contribution between 15 to 21 years. The investment amount can go from a minimum amount of Rs. 250 to 1.5 lakh, here again, the interest rate is revised each quarter.

The contribution made by you towards the NPS is allowed a deduction, under section 80CCD (1) but a combined deduction under section 80C and 80CCD (1) cannot exceed Rs 1.5 lakh. Now if you contribute an additional Rs 50,000 towards your NPS, which would be over and above the combined limit, you can claim a deduction under section 80CCD (1B). So a total deduction of Rs 1.5 lakh plus Rs 50,000 can be claimed for contributions towards the NPS under two different sections of the Income Tax Act. However, the additional deduction of Rs 50,000 is available only on investments in Tier-1 account of NPS.

The scheme is a mix between both insurance and equity investments, but when compared to a PF or ELSS the charges here are higher. The investments come with conditions because of the life cover element that comes with it when compared to other tax savers under section 80C.

NABARD means National Bank for Agriculture and Rural Development, so the bonds issued qualify under section 80C, however, the availability for these depend on the government notifying the same. In recent years we haven’t seen any availability on these for section 80C investments.

The investments are as similar to bank fixed deposits and are available for different time durations but only the five-year Post Office Time Deposit (POTD) qualifies for tax-saving under section 80C. The interest rate here is reviewed every quarter and is entirely taxable.

The principal repayment on your home loan falls under section 80C. The interest paid can also save you income tax but the eligibility would be under section 24 and section 80EE of the Income Tax Act. If you have an outstanding home loan you need not invest in other tax-saving products just to claim tax benefits, if the limit under section 80C is fully utilised.

If you have made payments to development authorities like Delhi Development Authority (DDA) you can claim a tax benefit it under section 80C.

Any amount paid towards your life insurance premium for your spouse, children or your self is eligible under section 80C, but premiums you pay for your parents or your in-laws are not eligible under section 80C. All policies registered under the Insurance Regulatory and Development Authority of India (IRDA) are eligible. However, if you fall under the Hindu Undivided Family (HUF) you can claim a tax deduction on the premium paid.