<P> National Savings Certificate (NSC) (VIII Issue): </P> <P> NSC is a time - tested tax saving instrument with a maturity period of Five and Ten Years . Presently, the interest is paid @ 8.50% p.a. on 5 year NSC and 8.80% Per Annum on 10 year NSC . Interest is Compounded Half Yearly . While the minimum investment amount is Rs 100, there is no maximum amount . Premature withdrawals are permitted only in specific circumstances such as death of the holder . Investments in NSC are eligible for a deduction of up to Rs 150,000 p.a. under Section 80C . Furthermore, the accrued interest which is deemed to be reinvested qualifies for deduction under Section 80C . However, the interest income is chargeable to tax in the year in which it accrues . </P> <P> Infrastructure Bonds: These are also popularly called Infra Bonds . These are issued by infrastructure companies, and not the government . The amount that you invest in these bonds can also be included in Sec 80C deductions . </P> <P> Pension Funds--Section 80CCC: This section--Sec 80CCC--stipulates that an investment in pension funds is eligible for deduction from your income . Section 80CCC investment limit is clubbed with the limit of Section 80C--it means that the total deduction available for 80CCC and 80C is Rs . 1.50 Lakh. This also means that your investment in pension funds up to Rs . 1.50 Lakh can be claimed as deduction u / s 80CCC . However, as mentioned earlier, the total deduction u / s 80C and 80CCC cannot exceed Rs . 1.50 Lakh . </P>

Discuss the evolution of income tax law in india