If you have taken a housing-loan to buy a house, then the interest you pay on your housing-loan qualify for tax benefit under Section 24B. Interest paid up to Rs.2 lakh in a financial year on housing-loan is allowed as deduction from your income. If you have taken a home-improvement loan, then interest up to Rs.30,000 will be allowed as deduction under this section.

Life insurance premium of self, spouse and any child’s insurance are also tax deductible under section 80C. In addition, the amount received on maturity of the policy is also not taxable. Investments in the Unit-linked insurance plans, which provide life insurance and invest in equity, in the name of self, spouse and a child, are entitled to tax deduction under Section 80C.

The maximum investment of Rs 1,50,000 per year in five years fixed deposits (FDs) with certain banks is eligible for exemption under section 80C. Similarly, a maximum investment of Rs 1,50,000 in five years post office deposits (POTD qualifies for exemption under Section 80C. However, interest accrued on both the schemes is entirely taxable.