Deductions from income under sec 80 c

1. All About Section ‘80C’
Tax Deduction
Submitted by:
Karan Kapoor
Sourabh Arora
Sagar Gupta
Submitted to:
Prof. G.C. Mondal

2. More About Scheme  PPF is a deposit scheme run by Central Government
Minimum Investment in a year  Rs 500
Maximum Investment in a year  Rs 150000
Hidden Costs  Nil
Risk
 Completely safe
 No possibility of principle loss
 8.7%.Compounded yearly
Return  Yearly, but can be withdrawn at maturity
Taxation
 Interest is tax free
 No TDS
 Only partial withdrawal is allowed, after 5 years.
Liquidity
 Cant be closed before 15 years
PPF (Public Provident
Fund)

3. More About Scheme  An ELSS is a diversified equity mutual fund.
Minimum Investment in a year  Rs.1000
Maximum Investment in a year  No limit(But the deductions are eligible till Rs.1,50,000)
Hidden Costs  Nil
Risk
 There is market risk involved.
 There is a possibility of capital loss.
Return
 Average 14% in last 5 years of all ELSS industry
 Return obtained is variable.
Taxation
 Interest is tax free
 No TDS on return
 There is lock-in period of 3 years.
Liquidity
 Money cannot be withdrawn before 3 years.
Equity Linked Savings Schemes
(ELSS Mutual funds)

4. More About Scheme
 It is a special account specially for the welfare of girl
child.
Minimum Investment in a year  Rs.1000
Maximum Investment in a year  Rs.1,50,000
Hidden Costs  Nil
Risk
 It is a completely safe product
 There is no probability of capital loss.
Return
 Return obtained is fixed.
 Return obtained is 9.1%.
Taxation
 Interest is tax free
 No TDS on return
 There is lock-in period of 14 years.
Liquidity
 Money cannot be withdrawn before 14 years.
Sukanya Samriddhi
Account

5. Employee Provident Fund
More About Scheme
 Its provident fund deducted from employee by
employers in case of salaried person
Minimum Investment in a year  As per employment terms
Maximum Investment in a year  There is no limit
Hidden Costs  Nil
Risk
 It is a completely safe product
 There is no probability of capital loss.
Return
 Return obtained is fixed.
 Return obtained is 8.5%
Taxation
 Interest is tax free if not withdrawn before 5 years.
 No TDS on return
 One has to retire or resign for the provident fund
Liquidity  One cannot withdraw money before resignation or
retirement.

6. More About Scheme
 Life insurance policies like Endowment policies, term
insurance policies etc.
Minimum Investment in a year  Varies among Insurance companies
Maximum Investment in a year
 The maximum tax deduction up to Rs.1,50,000.(The
premium is tax deductible if less than 10% of the Sum
Insured)
Hidden Costs  Lot of hidden costs like commissions and expenses
Risk
 It is a completely safe product
 There is no probability of capital loss.
Return
 Return depends on the market
Taxation
 Returns are taxable
 No TDS
Life Insurance Policy

7. More About Scheme
 NSC is a government bond having maturity period of 6
years or 10 years.
Minimum Investment in a year  Rs.1000.
Maximum Investment in a year
 There is no upper limit(However deduction only up to
Rs.1,50,000)
Hidden Costs  Nil
Risk
 It is a completely safe product
 There is no probability of capital loss.
Return
 Return obtained is fixed.
 Return obtained is 8.8% for 10 years and 8.5% for 6 year
Taxation
 Interest is taxable
 No TDS on return
Liquidity
 No withdrawal can be made before 6 years or 10 years
as per the scheme selected.
National Savings Schemes

8. More About Scheme
Minimum Investment in a year
Maximum Investment in a year
Hidden Costs
 These deposits are similar to the bank deposits
 Rs 100
 Rs 150000
 Nil
Risk
 Completely safe
 No possibility of principle loss
Return  7%-8%.Compounded yearly- varies among banks
Taxation
 Interest is taxed.
 No TDS
Liquidity
 There is a lock-in period of 5 years.
 No withdrawal before 5 years
TAX saving Fixed Deposit

9. More About Scheme  ULIP is a investment plan with life insurance
Minimum Investment in a year
 Any amount above Rs 100( Varies among Insurance
companies)
Maximum Investment in a year
 No Upper limit(However deduction only up to
Rs.1,50,000)
Hidden Costs  Lot of Costs like Agent’s commission, Admin costs etc
Risk
 There is a possibility capital loss
Return  Returns depend on the market conditions.
Taxation
 Return is taxable at the time of maturity
 No TDS on returns
 There is a lock-in period of 5 years.
Liquidity
 No withdrawal before 5 years
ULIP (Unit Linked Insurance Plan)

10. Thank You