Section 80C
Section 80C defines investments and expenditures that qualify for deduction from gross total income, up to ₹1,50,000 per financial year. Available only to individuals and HUFs under the old tax regime.
Eligible Instruments
Market-Linked: ELSS (3-year lock-in), PPF (15-year), NPS (additional ₹50,000 under 80CCD(1B)), Sukanya Samriddhi Yojana, SCSS.
Insurance: Life insurance premiums, ULIP premiums.
Fixed Return: 5-year bank FD (tax-saver), Post Office 5-year Time Deposit.
Debt Repayment: Home loan principal repayment, stamp duty and registration charges.
Expenses: Tuition fees for up to 2 children in India, EPF employee contribution.
Key Parameters
| Parameter | Detail |
|---|---|
| Maximum Deduction | ₹1,50,000 per year |
| Taxpayer types | Individual + HUF |
| Tax regime | Old regime only |
| Combined limit | 80C + 80CCC + 80CCD(1) capped at ₹1.5 lakh |
Under New Tax Regime
Individuals opting for the new regime (default from FY 2023-24) cannot claim Section 80C deductions. The new regime offers lower slab rates in exchange for foregoing most deductions. The decision depends on total income and quantum of eligible deductions.
Section 80CCD(1B)
NPS contributions up to ₹50,000 qualify for an additional deduction over and above the ₹1.5 lakh 80C limit.