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Tax payers can claim deductions of up of ₹1,50,000 under Section 80C of the Income Tax Act. Some of the best options to save tax under Section 80C are:

Life insurance policies and health insurance policies are useful tax planning tools. In case of life insurance, tax benefits can be claimed under Section 80C of the Income Tax Act for premiums paid toward the policy. The maximum deduction that can be claimed under this section is ₹1,50,000. Section 80D of the Income Tax Act 1961 allows taxpayers to claim deductions for health insurance premiums paid. The maximum tax deduction that can be claimed under Section 80D is ₹25,000. The proceeds from a life insurance cover are exempt from tax under Section 10(10D).

Taxpayers can claim tax deduction of up to ₹1,50,000 on premiums paid towards life insurance policies under Section 80C of the Income Tax Act. Premiums paid for whole life insurance policies, term life insurance polices and ULIPs are eligible for tax benefits under this section. Deductions can be claimed on premiums paid for insuring your family members (self, spouse and children). 

The tax saving benefits that you can avail by payment of premiums against a health insurance policy will be calculated under section 80D. Below is the table providing the details of tax benefits for health insurance (section 80D).

Certain tax-saving investments made during a financial year can, under Section 80C of the Income Tax Act, 1961, be claimed as deduction. Some of the popular ones are:

Under Section 80C of the Income Tax Act, a deduction of up to ₹1,50,000 can be claimed on premiums paid towards life insurance. All premiums paid for life insurance, including those for ULIPs, are eligible for tax benefits under section 80C of the Income Tax Act. You can also claim tax deductions for the premiums paid for insuring your family members (self, spouse and children). The limit for claiming this benefit is ₹1,50,000.

Proper tax planning is necessary if you want to reduce your tax liability. Below are some of the popular tax-saving instruments you should consider opting if you want to save tax:

A maximum deduction of ₹1,50,000 can be claimed from your taxable income under section 80C of the Income Tax Act. The limit was raised from ₹1,00,000 to ₹1,50,000 in the Union Budget 2014. Tax benefits under this section can only be claimed by individuals and Hindu Undivided Family.