Deductions from Taxable Income (Section 80C)

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Saving Scheme	Sec. under which Tax Benefit available	Return	Tax benefits for earnings (i.e. interest received / dividend received)	Lock in Period and other Remarks
National Saving Certificates -  ( NSC scheme  )	Section 80C	8.50% for VIII Series 5 Year NSCs; and  8.80% for 10 year NSCs for FY 2013-14	Taxable	5 years (reduced wef  Dec 2011 from 6 years to 5 years for new investments).  The yield on these NSCs will now be revised every year and will be 25 bps above the 5 year government bond yields
Equity Linked Savings Schemes (ELSS)	Section 80C	Varies from year to year  (Market linked)	Dividend is tax free	3 years

Life Insurance Policies	Section 80C	Varies from year to year	Varies from scheme to scheme	Varies from scheme to scheme
Unit Linked Insurance Plan (ULIP)	Section 80C	Varies from year to year	Varies from scheme to scheme	Varies from scheme to scheme (15 to 20 years)
Infrastructure Bonds	Section 80C	Varies from issue to issue. These were around 8%+ in Dec 2011.   These have lost their charm as Additional Tax rebate of Rs 20,000 is NOT given now from FY 2012-13 onwards.	Taxable	3 to 5 years
Contribution to EPF / GPF / Voluntary PF	Section 80C	8.50%	Interest earned is tax free	Till retirement (loans are permitted only after 5 years)
Insurance Policies	Section 80C	6 to 7% only	Earnings are tax free in most of the cases	Locked till maturity
ULIPS	Section 80C	Market linked	Earnngs are tax free	Partiail withdrawal allowed
Public Provident Fund (PPF)	Section 80C	Decreased to 8.70% for FY 2013--14	Interest earned is tax free	15 years and extendable.  Withdrawals allowed after 7 years.  Yield on PPF will vary and will be fixed at 25 basis point above the 10 year government bonds.
NPS	Section 80C	Market Linked	Interest earned is tax free	Withdrawal not permitted before maturity
Tuition Fees including admission fees or college fees paid for full time education of any two children of the assessee.	Section 80C	Not applicable	Not applicable	Not applicable
Repayment of Housing Loan (Principal)	Section 80C	Not applicable	Not applicable	Not applicable
Bank Fixed Deposits - 5 Years	Section 80C	Varies  from bank to bank (around 8.00% - 9.00%)	Nil	5 Years
Senior Citizens Savings Scheme 2004 (from financial year 2007-08)	Section 80C	9.20% for FY 2013-14	Taxable	As per the guidelines issued in December 2011, there will be spread of 100 basis points above the 5 year bonds yields for this scheme.
Post Office Time Deposit Account (from financial 2007-08)	Section 80C