TAX Saving Section 80C
TAX Saving Section 80C : There are several investments that enjoy deduction under Section 80C but their Tax treatment differs. Following are some details
| Product | Contribution eligible | Tenor | Returns for FY20 | Tax Treatment |
| Employees Provident Fund | 12% of your salary* | Till retirement | 8.65% (for FY 18-19) | Tax free |
| Equity-linked saving scheme | The minimum is typically Rs 500 | Lock in of 3 yrs | Market linked | No tax on LTCG of upto Rs1 lakh each year, 10% thereafter |
| Life insurance premium | Not more than 10% of sum assured** | Minimum lock in 2 yrs*** | Varies as per plan | Tax free |
| National Pension System | Rs 1,000 | Till 60 yrs, can be extended till 70 yrs | Market linked | Lump sum tax free, annuity income taxable* |
| National Saving Certificate | Minimum Rs 100 | 5 yrs | 7.90% | Taxable on maturity** |
| Pension plan by insurers | Not applicable | As specified in policy brochure | Market linked or decided by insurer | Lump sum tax free, annuity income taxable* |
| Pension plan by mutual fund | The minimum is typically Rs 500 | Minimum lock in is 3 yrs; no exit load after 58 yrs | Market linked | Dividend distribution tax applicable |
| 5 yrs post office and bank FD’s | Minimum Rs 100 | 5 yrs | 7.70%(PO); 6.50-7.75%(FDs) | Taxable on maturity**** |
| Public Provident Fund | Rs.500 – 1.5 lakh | 15 yrs, can be extended by 5 yrs | 7.90% | Tax free |
| Senior Citizen Saving Scheme | Rs.1000 – 15 lakh | 5 yrs, can be extended by 3 yrs | 8.60% | Taxable on maturity**** |
| Sukanya Samriddhi Account | Rs.250 – 1.5 lakh | Can be opened up to age of 10yrs^^^ | 8.40% | Tax free |
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