Thread by @Finology_Quest

Tax Benefits that come under section 80c

• ELSS
• Tax-saving FD
• NSC
• Home Loan
• Sukanya Samriddhi Yojana
• PPF
• EPF
• Infrastructure bonds
• SCSS
• NPS
• ULIPs

Let’s understand each scheme 🧵⤵️

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• ELSS

Interest rate - 12-15%
Lock-in period - 3 yrs

ELSS is the only kind of Mutual Fund that is covered under the ambit of section 80c

• Tax-saving FDs

Interest rate - 7-8%
Lock-in period - 5 yrs

This is a special scheme provided by banks & post offices. It is to be noted that, though the contribution towards this scheme is deductible, the returns earned attract tax liability.

• National Saving Schemes(NSC)

Interest rate - 6.8%
Lock-in period - 5 yrs

NSCs are introduced by post-offices where you can avail a deduction of Rs 1,50,000 but the interest receivable is not subject to TDS.

• Home Loan

If u have housing loan, section 80c offers these benefits:

Interest: Whatever interest you pay for the loan, you can claim tax deduction fr up to Rs 2 lakh under section 24.

Also, the EMI paid against loan is tax deductible under sec 80c fr up to Rs 1.5 lakh.

• Sukanya Samriddhi Yojana

Interest rate - 8.4%
Lock-in period - till the girl turns 21 yrs of age

There is an exemption for the lock-in period. Partial withdrawal is allowed when the girl turns 18.

• PPF

Interest rate - 7.9%
Lock-in period - 15 yrs

Available to all Indian citizens either in their own name or on behalf of a minor, contribution to PPF is eligible for deduction under section 80c.

• EPF

Interest rate - 8.1%
Lock-in period - 5 yrs

Here, the employer’s contribution is not eligible for deduction under section 80c

• Infrastructure bonds

These long-term government-backed securities also fall under the ambit of this section’s deductions. The only condition to consider is that the exemption can be availed only for investments above Rs.20,000.

• Senior citizens saving schemes

Interest rate - 7.4%
Lock-in period - 5 yrs

Backed by the government, this senior citizen savings scheme can be availed by a senior citizen with a minimum investment of Rs.1,000.

• National Pension Schemes(NPS)

Returns - 9-10%
Lock-in period - until the age of 60

NPS is a voluntary pension scheme set up by the govt. It helps an investor to save for his retirement pension.

• ULIPs

Interest rate - 7-9%

Lock-in period - 5 yrs

ULIP, like LIC plans, is a combination of Investment & Insurance. The premium paid for ULIP attracts tax benefits under section 80c.

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