Section 80C encourages investments in savings schemes and offers tax relief on some of your expenses up to Rs.1,50,000.
How to reach the Rs.1,50,000 limit without investments?
- Check your PF balance. Your provident fund contribution accumulated over the years itself might add up to a sizable amount. This is covered under the Rs.1,50,000 limit.
- Did you/ are you about to buy a house between April 2016 - March 2017? Expenses related to stamp duty and registration charges can be deducted under Section 80C.
- Are you paying off home loan? Check your home loan interest certificate for EMI payment details. Your principal repayment for this year can be claimed as a deduction under Section 80C.
- Do you have children who go to school or college? Get their fee receipts and add them. (This also includes play school, preschool)
- Are you making life insurance premium payments? Claim the premium payments too. The only condition is the premium must be less than 10% of the sum assured.
If you still haven't reached the limit, then consider investments such as tax-saving mutual funds, tax-savings FDS, PPF, Sukanya Samridhi Account etc.