ITR Filing Deadline: PPF To Sukanya Samriddhi Yojana, Top 8 Schemes Eligible For Section 80C Tax Benefits

The income tax return (ITR) filing deadline for assessment year 2025-26 is extended to September 15, from the earlier July 31. Although reports have stated that the possibility for yet another extension of the September 15 due date is high, no official statement has yet been made by the Income Tax Department. Nonetheless, if one misses the current deadline, taxpayers are open for penalties. Also, filing last-minute ITR could lead to potential mishaps and you might miss out on opportunities to claim tax benefits.

One of the most popular and traditional tax deductions is called as section 80C, offering an exemption of Rs 1.5 lakh under the Income Tax Act.

There are at least 8 top investment schemes that are eligible for section 80C benefits. These schemes are both market-linked and government-backed. Some even offer guaranteed returns.

1. ELSS:

ELSS means equity-linked savings scheme, offer tax-saving mutual funds. Investment in ELSS is generally diverse with minimum 80% stored in equities. ELSS funds are eligible for section 80C, however, the benefits of Rs 1.50 lakh can be availed after a short lock-in period of 3 years.

2. National Pension Scheme (NPS):

This scheme is introduced by the government to support employees with pensions and annuities during their retirement ages. NPS is market-linked and is available for all central, state and private sector employees. Apart from boosting retirement savings, NPS also offers huge tax benefits.

As per NSDL, any individual who is Subscriber of NPS can claim tax benefit under Sec 80 CCD (1) within the overall ceiling of Rs. 1.5 lac under Sec 80 CCE. An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act. 1961.

3. ULIPs:

Unit Linked Insurance Plan or ULIPs, is a unique investment plan offering best of two worlds, life coverage and market-linked gains. This means a portion of ULIPs is a insurance coverage, where you pay premium and the other portion is invested in market-related instruments like equities, debt, or a mix of both.

The premium you pay under ULIPs is eligible for section 80C benefit, while the proceeds of the scheme on maturity or death is tax free under Section 10(10D).

4. Tax Saving FDs:

This scheme are fixed deposits with a certain maturity period, offered by banks. The scheme not only offers guaranteed returns but is also risk free. It is also eligible for Rs 1.5 lakh under section 80c.

As per ICICI Bank website, under Section 80C of the Income Tax Act, 1961, investors can claim a tax deduction of up to Rs 1.5 lakh per year by investing in these FDs. However, Tax Saving FDs come with a lock-in period of 5 years, meaning you can't withdraw the invested amount during this time. The interest rate for tax saving FDs varies from bank to bank and the interest earned on this is considered as taxable income.

5. Public Provident Fund (PPF) Account:

This is a popular government-backed small-saving schemes, with an opportunity for investing small with minimum Rs 500, earning reasonable and guaranteed returns for your retirement. In fact, PPF offers 7.1% rate of return currently, which is either equal or better than many normal bank FDs. The maximum amount in PPF can go up to Rs 1.5 lakh.

Withdrawal under PPF is permissible every year from 7th financial year, while the maturity period is of 15 years. After maturity, account can be extended for any number for a block of 5 years with further deposits.

Notably, deposits in PPF account is eligible for section 80C benefit. Also, interest earned in this account are tax free under section 10 of IT Act.

6. Senior Citizens' Saving Scheme:

SCSS is meant for the elderly, offering retirement benefits. Senior citizens above the age group of 60 years can choose the SCSS scheme with a minimum investment of Rs 1,000 to Rs 15 lakh. The scheme is backed by the government and offers guaranteed returns of 8.2%.

The scheme is eligible for section 80C benefit as well. The risk is low in this scheme, and has overall maturity period of 5 years which can be later extended for another 3 years after maturity.

7. National Savings Certificate (NSC):

NSC is yet another secured scheme offered by India Post, offering at least 7.7% rate of return per annum as of Q2FY26. Investment can begin with as low as Rs 1,000. There is lock-in period of 5 years under the scheme.

Under the old regime, tax benefit of Rs 1.5 lakh can be claimed by NSC investors under section 80C.

8. Sukanya Samriddhi Yojana (SSY):

Sukanya Samriddhi is meant for girl child which can be opened by parents or guardians once the daughter achieves 10 years of age. Account can be opened in Post offices and in authorised banks. The scheme is mainly focused on helping parents to invest in risk-free and guaranteed return scheme for their daughters higher education or meet education expenses in the future.

SSY matures once the girl is of 21 years old, however, withdrawal is allowed for marriage of the girl after she attains the legal age of 18 years. In a financial year, minimum investment is of Rs 250, which can go to maximum Rs 1.5 lakh.

Here as well, deposit qualifies for deduction under 80C. But also, the interest earned are tax free under section 10. Currently, the scheme offers 8.2% interest rate.

How to Claim Section 80C Deductions?

As per ClearTax, it is important to understand and comply with the following points to claim Section 80C deductions:

- Invest in eligible instruments before 31st March of the financial year.

- Collect proofs such as deposit slips, insurance premium receipts, ELSS statements, etc.

- Declare investments to your employer to adjust TDS.

- File ITR and report investments under "Deductions under Chapter VI-A".