Section 80C · Investment-linked deductions
Your ₹1.5 lakh tax-saving toolkit.
- Max deduction
- ₹1,50,000
- Regime
- Old only
- Who can claim
- Individuals & HUFs
- Chapter
- VI-A
In plain English
Park up to ₹1,50,000 a year in approved investments and payments — like PPF, ELSS, LIC premium, EPF, kids' tuition or home-loan principal — and shave that amount straight off your taxable income. It only works if you stay on the old tax regime.
| Meaning | Number |
|---|---|
| Max deduction | ₹1,50,000 |
Where you can invest or pay (eligible u/s 80C)
- PPF — Public Provident Fund contribution
- EPF / VPF — Employee's & voluntary provident fund
- ELSS mutual funds — 3-year lock-in equity schemes
- LIC premium — Life insurance premium for self, spouse, children
- 5-year tax-saving FD — With a scheduled bank or post office
- NSC — National Savings Certificate (VIII issue)
- Sukanya Samriddhi — For a girl child below 10
- SCSS — Senior Citizens Savings Scheme
- ULIP — Unit Linked Insurance Plan (5-year lock-in)
- NPS Tier-I — Within the overall ₹1.5L cap (extra ₹50k via 80CCD(1B))
- Home-loan principal — Principal repayment on a housing loan
- Children's tuition fees — Up to two children, full-time education in India
- Stamp duty & registration — On purchase of a residential house
What this section covers
Section 80C is the most widely used deduction under Chapter VI-A of the Income-tax Act, 1961. It permits individuals and HUFs to claim a deduction up to ₹1,50,000 from gross total income for investments and payments listed in sub-section (2) — including LIC premium, PPF, EPF/VPF, ELSS, NSC, 5-year tax-saving FDs, principal repayment of a housing loan, tuition fees of up to two children, Sukanya Samriddhi and Senior Citizens Savings Scheme. The deduction is available only under the old regime; taxpayers opting for the default new regime u/s 115BAC cannot claim it.
Read the legal text
“In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted… the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh and fifty thousand rupees.”
Old Act vs New Act
| Aspect | Act, 1961 | Act, 2025 |
|---|---|---|
| Section | 80C | 123 + Schedule XV |
| Topic | Investment-linked deductions | |
| Verdict | Mapped to Section 123 read with Schedule XV — reviewed | |
| Notes | Old Section 80C maps to Section 123 read with Schedule XV of the Income-tax Act, 2025. Section 123 retains an aggregate ceiling of ₹1,50,000 for the qualifying payments listed in Schedule XV, subject to its conditions. | |
Common confusion
80C (investments and payments) is often confused with 80D (health insurance premium) and 80CCD (NPS). All three are separate, with their own ceilings. None of them are available if you opt for the default new regime u/s 115BAC.
Who should know this
Related sections
Based on the official Income-tax Act, 1961 and the published Income-tax Act, 2025 as available on the Income Tax Department website. Always verify against the published Act and consult a qualified professional.
What was checked
80C → 123 read with Schedule XV: Mapping and ₹1.5 lakh aggregate ceiling under s.123; Schedule XV contains the qualifying payments and conditions. Income-tax Act, 2025 as amended by Finance Act, 2026 (consolidated PDF)