Every Individual and HUF has an option to claim deduction under section 80C upto Rs. 100,000 for making payment towards specified investment. The deduction is allowable from gross total income chargeable to tax. Following are the payments qualifying for such deduction: 1. Life Insurance Premium, subject to a maximum of 20% of sum assured (sum assured does not include any premium agreed to be returned or any benefit by way of bonus); 2. Payment in respect of non-commutable deferred annuity; 3. Any sum deducted from salary payable to a government employee for the purpose of securing him a deferred annuity (subject to a maximum of 20% of salary); 4. Contribution (not being repayment of loan) towards Statutory Provident Fund and Recognised Provident Fund; 5. Contribution (not being repayment of loan) towards 15 years Public Provident Fund not exceeding Rs. 70,000; 6. Contribution towards an approved Superannuation Fund; 7. Subscription to National Savings Certificates; 8. Contribution for participating in the unit-linked insurance plan (ULIP) of Unit Trust of India & LIC Mutual Fund; 9. Payment for notified annuity plan of LIC; 10. Subscription towards notified units of Mutual Fund or UTI; 11. Contribution to notified pension fund set up by Mutual Fund or UTI; 12. Any sum paid (including accrued interest) as subscription to Home Loan Account Scheme of the National Housing Bank or contribution to any notified deposit scheme pension fund set up by the National Housing Bank; 13. Any sum paid as subscription to any scheme of Public Sector Company engaged in providing long term finance for purchase/ construction of residential house in India and Housing board constituted in India for the purpose of planning development or improvement of cities/ towns; 14. Any sum paid as tuition fees whether at the time of admission or otherwise to any university / college / education institution in India for full time education of any two children of an individual; 15. Any payment towards the cost of purchase/ construction of a residential property (including repayment of loan taken from Government, bank, co-operative bank, LIC, National Housing Bank, assessee’s employer where such employer is public company/ public sector company/ university/ co-operative society). 16. Amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of mutual fund proceeds of which are utilized for developing, maintaining, etc. of a new infrastructure facility. 17. Amount deposited in a fixed deposit of five years or more with a scheduled bank in accordance with a scheme framed and notified by the Central Government (applicable from the assessment year 2007-08) (it shall be a minimum of Rs. 100 or multiples thereof). 18. Subscription to any notified bonds of National Bank for Agriculture and Rural Development (i.e. the NABARD Rural Development bonds 0f NABARD) (applicable from the assessment year 2008-09). 19. Amount deposited under Senior Citizen Saving Scheme (applicable from the assessment year 2008-09). 20. Amount deposited in Five Year Time Deposit Scheme in post office (applicable from the assessment year 2008-09). Taxmantra.com has the expertise in handling individual taxation. Taxmantra.com also provides comprehensive tax planning and Tax support in addition to filing of return of income. Please contact us immediately. We are here to help in solving all your tax related issues. Alok Patnia Founder and Director at www.taxmantra.com