A complete guide to investing and I-T rebates under Section 80C

Once you know the amount required for availing maximum deductions under Section 80C, it's time to select the investment option(s) based on their liquidity and taxability of returns.

With the financial year drawing to close, income tax-payers would have started exploring various tax-saving investment options allowed under Sec 80C of the Income-Tax Act. However, with various payments and mandatory outflows also qualifying under Section 80C, the first step towards making tax saving investments under this Section is to figure out the required investment amount.

Required investments for optimal Section 80C deduction

Taxpayers can claim up to Rs 1.50 lakh as deductions under Section 80C. Apart from the various investment options eligible for availing Section 80C deduction, certain pay-outs and mandatory expenses are also covered under the same deduction.