80C

Time to submit our investment receipts for tax saving. Last minute investors busily searching various channels to invest for tax saving. A brief information of different 80C channels I have listed.

Say, a person’s gross annual income is Rs.5 lakh and he invests Rs.1 lakh under 80C, his net taxable income becomes Rs.4 lakh.

If failed to invest this year at least we can make proactive decesion in the coming financial year by investing early.

80C Tax-saving channels

Saving option	Lock-in period	Risk
Provident fund, pension fund	Till end of service	Nil
Public Provident Fund	15 years	Nil
National Savings Certificates	6 years	Nil
Bank fixed deposits	5 years	Low
Insurance policies (endowment, money-back)	Policy term	Low
Ulips, pension plans	3-5 years	Low to high
Tax plans of mutual funds	3 years	High

Other expenses that qualify under section 80C are, School fee of two children of the taxpayer and home loan repayment of the principal portion.