Investment options for tax benefit?



What are the different investment options in India for availing tax benefit.
I know about PPF and NSC,.
Is it true that 1L limit has been set already for PPF ?

3 Replies to “Investment options for tax benefit?”

  1. Deposits in Public Provident Fund can be now made upto Rs 1 lac under Sec 80C. Other options under Sec 80C are Tution fees, Life Insurance Premium, NABARD Bonds, Housing loan principal etc.
    Investments in Notified Infra Bonds upto Rs 20000 can be made under 80CCF
    Medical Insurance premium paid by any mode other than cash, on self can be claimed upto Rs 15000 and on parents upto Rs 20000.
    Rent payment and not receiving HRA can be claimed under 80GG.
    Donations under 80G can be claimed


  2. A bill is being introduced in the Winter Session of Parliament to enable PPF subscribers to deposit upto Rs. 1 lakh and claim tax benefits.

    Effective date is likely to be 1st December, 2011. After the bill is passed!

    Be ready with money and go to your Bank/Post Office on or after 1st December 2011 to deposit the balance Rs. 30,000


  3. Hi,

    u can invest in ELSS (Mutual Funds) which comes with a 3 year lock in period

    u can invest in bank FD with 5 year lock in

    insurance premium (both life and health) is exempted

    1l is a part of the proposed DTC (Direct Tax Code) which may come into effect from 1st April 2012





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