The tax season is back again and the common man is gearing up to look into all possible avenues to save tax. Exemptions under section 80C of the Income Tax Act are some of the most popular avenues known to people for saving Income Tax.

Investments upto Rs 1 lakh are considered to be tax exempted under this section. However, many people are not aware of the different categories under Section 80C in which they can invest and get returns along with saving themselves from being taxed.

Investments which are exempted from tax under Section 80C:

•Premium paid towards life insurance policy or any Unit Linked Insurance Plan (ULIP)

•Any contribution made towards a statutory or recognized Provident Fund. Contributions towards employee provident fund (EPF) as well as Public Provident Fund (PPF) are tax exempted.

•If a person makes investment in a recognized retirement/superannuation fund, then such a contribution is also considered tax exempted.

•Investments under Equity Linked Savings Schemes (ELSS) of certain mutual funds or Unit Trust of India are also exempted from tax under this section. However, investment in only selected ELSS funds is eligible for exemption under section 80C. Eg: SBI Magnum Tax Gain, HDFC Long term advantage etc.

•Any investment National Savings Certificate (NSC) is also exempted from tax under Section 80C.

•Any home loan scheme under National Housing Bank is tax exempted.

•Tuition fees for upto two children by person.

•Subscription towards bonds issued by National Bank for Agriculture and Rural Development (NABARD).

•Post office Time deposit of lock in period of 5 years is also eligible for exemption from tax.

•Any deposit made under the Senior Citizen Saving Scheme Rules, 2007.

•The principal amount of the EMI (Equated Monthly Installment) for a home loan is eligible for deduction under Section 80C.

•Shares and debentures of those public sector companies involved in priority sectors like telecom and infrastructure are also provided for exemption from tax.