Deduction 80C for A.Y.2016-17 & A.Y.2017-18

We know that you are very much interested to know the deduction from gross total income to calculate net income tax. As we will discuss only here deduction under section 80C in detail.

There are lots of deductions comes under Chapter VI-A from section 80C to 80U like 80HH, 80RRB, 80U and more. But this article is exclusively for the deduction comes under section 80C.

You can claim the deduction under section 80C as per follows: 

• A.Y. 2017-18: Up to 1,50,000/- (As per Budget 2016 Finance Bill 2016)
• A.Y. 2016-17: Up to 1,50,000/-
• A.Y. 2015-16: Up to 1,50,000/-
• A.Y. 2014-15: Up to 1,00,000/-

Aggregate amount of deduction u/s 80C, 80CCC, 80CCD and new section 80CCE  is restricted to Rs.1,50,000.

You can avail the benefit of deduction u/s 80C by investing in the following schemes. 

1. Payment for Life Insurance Premium.
2. Payment for Deferred Annuity Plan.
3. Deferred Annuity Payable by Government.
4. Contribution to Public Provident Fund.
5. Contribution to Provident Fund set up by Central Government.
6. Contribution to Recognised Provident Fund.
7. Contribution to recognized superannuation fund.
8. Subscription to any security or deposit notified by Government.
9. Subscription to Saving Certificates.
10. Subscription for Unit Linked Insurance Plan 1971.
11. Contribution for Unit Linked Insurance Plan of LIC Mutual Fund.
12. Payment for annuity plan of LIC or any other insurer.
13. Subscription to units of notified mutual fund.
14. Contribution to notified pension fund of mutual fund.
15. Pension fund set up National Housing Bank.
16. Subscription to a deposit scheme of public sector company engaged in providing long term finance for housing.
17. Tuition fees of two children in India.
18. Payment of instalment for self-financing of a residential property for repayment of loan.
19. Subscription to equity shares or debentures as approved for infrastructure.
20. Subscription to any units of mutual fund as approved by the Central Board of Direct Taxes.
21. As per the Finance Act, 2006 for F.Y. 2006-07, a term-deposit for a fixed period of not less than five years with a scheduled bank would also qualify for tax deduction under Section 0 C within the overall limit of Rs. 1 lakh. This deduction to some Rules.
22. Notified bonds of NABARD.
23. Deposit in an account under the Senior Citizens Savings Scheme Rules, 2004.
24. Five-years time deposit in an account under the Post Officer Time Deposit Rules, 1981.