80C Tax Deductions Increased to 1,50,000 from 1,00,000 – Tax Savings

Applicable from:

Financial Year 2014-15 onwards

Asst. Year 2015-16 onwards


The long-awaited wish of the tax payers for years is finally fulfilled by the govt. by increasing the limit of deduction under 80C from Rs. 1,00,000 to Rs. 1,50,000  w.e.f Financial Year 2014-2015 i.e., Asst. Year 2015-16. Following is the detailed list of all the items covered under Sec 80 C aggregate of which cannot exceed Rs. 1,50,000. The items here below are grouped for your convenience:


1. The following group contains most commonly availed deductions:


In Favor of
1. Life Insurance Premium 1. Self,
2. Spouse&
3. Children
 Policy taken on or after 1st April, 2012:

Maximum allowable deduction is 10% of Actual Sum Assured.
15% for Handicapped and Assessee covered under 80DDB

Policy taken before 1st April 2012: 20% instead of 10%

2. School/College Fee Any 2 Children Fee paid towards only tuition fee to any university,
college, school situated in India for full time education is allowed
and payment made towards donations, transport fee are not allowed.Note:For interest paid on loan taken for education you can claim deduction separately u/s 80E
3. a. Cost of Purchase or Construction of
Residential House
b. Repayment of Loan taken for above purpose
In case of Repayment of Loan only Principal element should be taken.Note: For Interest paid on the loan you can claim deduction u/s 80EE (subject to conditions)
and u/s 24 Separately.



2. Contributions to various funds:

Contribution towards
Contribution in the Name Of
1. Statutory Provident Fund Individual Assessee
2. Public Provident Fund 1. Self
2. Spouse
3. Child
4. Member of an HUF
3. Recognized Provident Fund Assessee who is an Employee
4. Approved Superannuation Fund Assessee who is an Employee
5.a. Unit Linked Insurance Plan of UTI
b. LIC Mutual Fund (Dhanraksha Plan)
1. Self
2. Spouse
3. Child
4. Member of an HUF
6. Pension Fund set up by any Mutual Fund referred u/s 10(23D) Individual Assessee

 3. Deposits which are allowed as deductions:

Deposit made with
In the Name of
1. Post office under
Post office Savings Bank Rules, 1959
a. Self
b. as a Guardian of a Minor
10 yrs or 15 yrs
2. Scheduled Bank Individual 5 years or more
3. Post office as per PO Time Deposit Rules, 1981 Individual 5 yrs
4. National Housing Bank Individual Assessee as per scheme
5. Notified Deposit Schemes of
a. Public Sector Company providing long term
finance for purchase/Construction of Residential Housesb. Any Authority constituted in India for the purposes of
housing planning, development or improvement of cities,
towns and villages
Individual Assessee


4. Investments and Subscriptions:

1. Subscription to the National Savings Certificate

2. Subscription to any units of Mutual Fund referred u/s 10(23D) (Equity Linked Saving Schemes)

3. Subscription to Equity Share or Debentures forming part of any eligible issue of capital of public company or any public financial institution approved by board.



Last Updated: 15th January 2015

Dilip Kumar

+Dilip Kumar (Author and Editor of The Tax Info) is a Chartered Accountant from Hyderabad, Loves Blogging on Tax related matter.

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