While investing in a tax-saving instrument or any investment for that matter, it is important to keep an eye on the taxability of its income. If the income earned is taxable, the scope to make money over the long-term gets constrained as taxes will eat into your returns.
Most of us are already well aware of the deduction available under section 80C of the Income-tax Act, 1961. The maximum amount of deduction that can be claimed under section 80C is Rs 1.5 lakh for the current financial year. The section offers various investment options to the taxpayer which not only generate returns for him but can also be claimed as deduction while calculating total taxable income.