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» » Investment for Income tax 80C Summary

Saving SchemeSec. under which Tax Benefit availableReturnTax benefits for earnings (i.e. interest received / dividend received)Lock in Period and other Remarks
National Saving Certificates -  ( NSC scheme  )Section 80C8.50% for VIII Series 5 Year NSCs; and  8.80% for 10 year NSCs for FY 2013-14
Taxable
5 years (reduced wef  Dec 2011 from 6 years to 5 years for new investments).  The yield on these NSCs will now be revised every year and will be 25 bps above the 5 year government bond yields
Equity Linked Savings Schemes (ELSS)Section 80CVaries from year to year  (Market linked)Dividend is tax free3 years
Life Insurance PoliciesSection 80CVaries from year to yearVaries from scheme to schemeVaries from scheme to scheme
Unit Linked Insurance Plan (ULIP)Section 80CVaries from year to yearVaries from scheme to schemeVaries from scheme to scheme (15 to 20 years)
Infrastructure BondsSection 80CVaries from issue to issue.These were around 8%+ in Dec 2011.   These have lost their charm as Additional Tax rebate of Rs 20,000 is NOT given now from FY 2012-13 onwards. Taxable3 to 5 years
Contribution to EPF / GPF / Voluntary PFSection 80C8.50%Interest earned is tax freeTill retirement (loans are permitted only after 5 years)
Insurance PoliciesSection 80C6 to 7% onlyEarnings are tax free in most of the casesLocked till maturity
ULIPSSection 80CMarket linkedEarnngs are tax freePartiail withdrawal allowed
Public Provident Fund (PPF)Section 80CDecreased to 8.70% for FY 2013--14Interest earned is tax free15 years and extendable.  Withdrawals allowed after 7 years.  Yield on PPF will vary and will be fixed at 25 basis point above the 10 year government bonds.
NPSSection 80CMarket LinkedInterest earned is tax freeWithdrawal not permitted before maturity
Tuition Fees including admission fees or college fees paid for full time education of any two children of the assessee.Section 80CNot applicableNot applicableNot applicable
Repayment of Housing Loan (Principal)Section 80CNot applicableNot applicableNot applicable
Bank Fixed Deposits - 5 YearsSection 80CVaries  from bank to bank (around 8.00% - 9.00%)Nil5 Years
Senior Citizens Savings Scheme 2004 (from financial year 2007-08)Section 80C9.20% for FY 2013-14TaxableAs per the guidelines issued in December 2011, there will be spread of 100 basis points above the 5 year bonds yields for this scheme.
Post Office Time Deposit Account (from financial 2007-08)Section 80C   

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