Investments
in specified instruments are eligible for
rebate from the taxable income upto an amount
Rs. 1 lac in a financial year. These specified
instruments include the Premia paid for
a Life Insurance Policy, National Savings
Certificates, Equity Lnked Tax Savings Schemes
by Mutual Funds, Pension plans by Life Insurance
Companies, Public Provident Fund, Fixed
Deposit in specifid Banks etc. Additional
amount of Rs. 20,000 allowed, over and above
the existing limit of Rs. 1 lakh on tax
savings, for investment in long-term infrastructure
bomds as notifed by the Central Government.
-
Public
Providend Fund
:
Tax Free interest @ 8% p.a. Lock-in-period
for 15 years with an option of partial
withdrawal after 5 years
-
National
Savings Certificate
:
Interest @ 8% p.a. . Maturity after
6 years
-
Specified
Mutual Fund Schemes
: Specified "Equity Linked
Savings Schemes (ELSS)" of Mutual
Funds having a lock-in-period of 3 years.
For performance of ELSS schemes click
here
-
Life
Insurance
:
(a) Life Insurance premia is
subject to Tax Benefits u/s 80-C. The
maturity amount is eligible for benefits
u/s 10 ( 10 D ) .
(b) Premia paid ( upto
Rs 10,000/- p.a.) under specified Pension
Plan offered by a Life Insurance Company
is eligible for Tax rebate
- Fixed
Deposits in Specified Banks :
Fixed Deposits made in specified Banks
for a period of 5 years are eligible for
rebate
u/s 80 C
- Post
Office Senior Citizens Savings Scheme
:
Interest payable quarterly @ 9% p.a. maturity
after 5 years.
Maximum Investment Rs 15.00
lacs.
- Long-term
infrastructure bonds
: Rs. 20,000 allowed,
over and above the existing limit of Rs.
1lac u/s 80C.
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