Section 80C Deductions

Could you please tell me if index funds or ETFs purchased through the stock market are eligible for deduction under section 80C?
- Rajneesh Tyagi

Under section 80C of the Income Tax Act, only Equity Linked Savings Schemes (ELSS) of mutual funds is considered as an eligible investment to claim a deduction from an individual's taxable income.

Index funds or ETFs that are purchased through the stock market do not qualify for deduction under section 80C.

This article was originally published on March 18, 2009.