Section 80C — Rs 1.5 Lakh, Old Regime Only

The tax saved equals your 80C deduction times your marginal slab rate plus 4% cess. A full Rs 1.5 lakh claim saves Rs 46,800 at the 30% slab, Rs 31,200 at 20% and Rs 15,600 at 10%. Adding the extra Rs 50,000 NPS deduction under 80CCD(1B) can raise the total deduction to Rs 2 lakh.

Yes. From AY 2026-27, the new Income-tax Act, 2025 renumbers the old Section 80C of the 1961 Act as Section 123, but the Rs 1.5 lakh limit and the list of eligible investments stay the same. In practice everyone still calls it "80C", and employers and ITR forms continue to reference the familiar deduction.

No. Section 80C is available only to individuals and Hindu Undivided Families (HUFs). Companies, LLPs, partnership firms and other entities cannot claim it. For individuals, the investment or expense must generally be in the name of the taxpayer, spouse or children as specified for each item.

No. Section 80C is not available under the new tax regime, which is the default from FY 2023-24 onwards. If you opt for the new regime for its lower slab rates, you cannot claim any 80C deductions. Only the old tax regime allows 80C. You choose your regime each year (if you have no business income).

Very few. Under the new regime you lose 80C, 80D, 80CCD(1B) and most Chapter VI-A deductions. The notable exceptions still allowed are the employer's NPS contribution under Section 80CCD(2) and the Section 80JJAA deduction for new employment. Salaried taxpayers also get a higher standard deduction of Rs 75,000 (vs Rs 50,000 in the old regime).

Not automatically. If your total deductions (80C + 80D + home-loan interest under 24(b), etc.) are large, the old regime usually wins. If your deductions are modest, the new regime's lower rates, Rs 75,000 standard deduction and the 87A rebate up to Rs 12 lakh taxable income can save more even without 80C. Compare both before deciding.

It depends on your goal. For growth: ELSS mutual funds (3-year lock-in, market-linked). For guaranteed, tax-free returns: PPF (7.1%) or Sukanya Samriddhi Yojana (8.2%, girl child). For the shortest lock-in: ELSS at 3 years. For insurance plus tax saving: term life premium. Many salaried people already fill part of the limit through EPF and home-loan principal.

Yes. The employee's contribution to the Employees' Provident Fund (EPF) qualifies under Section 80C and is deducted from salary automatically. The employer's EPF contribution does not count towards your 80C. Voluntary Provident Fund (VPF) contributions over and above mandatory EPF also qualify, within the overall Rs 1.5 lakh ceiling.

Yes. The principal component of your home-loan EMI is deductible under Section 80C, within the Rs 1.5 lakh limit, for a residential property. Stamp duty and registration charges also qualify in the year of purchase. The interest component is claimed separately under Section 24(b) — up to Rs 2 lakh for a self-occupied house. Selling the property within 5 years reverses the 80C benefit.

Yes. Tuition fees paid for the full-time education of up to two children in any school, college or university in India qualify under Section 80C. Only the tuition-fee component counts — donations, development fees, transport and hostel charges do not. Both parents can split the claim across different children within their own limits.

ELSS (Equity-Linked Savings Scheme) is a specific category of equity mutual fund that qualifies for 80C, with a 3-year lock-in. Regular equity or debt funds do not qualify for 80C. On redemption, long-term capital gains above Rs 1.25 lakh a year are taxed at 12.5%. ELSS offers the shortest lock-in among 80C options.

Section 80CCD(1B) gives an additional deduction of up to Rs 50,000 for your own contribution to the National Pension System (NPS), over and above the Rs 1.5 lakh 80C ceiling. So a taxpayer who has fully used 80C can invest Rs 50,000 more in NPS and take total self-contribution deductions to Rs 2 lakh. Like 80C, it is available only under the old regime.

No, the 80C/80CCC/80CCD(1) combined limit is capped at Rs 1.5 lakh — investing more does not increase the deduction. You can, however, claim beyond it through other sections: Rs 50,000 for NPS under 80CCD(1B), medical insurance under 80D (Rs 25,000 / Rs 50,000), and home-loan interest under 24(b) (up to Rs 2 lakh).

Choose the old tax regime, then enter your total 80C investments (capped at Rs 1.5 lakh) in the Deductions schedule (Chapter VI-A) of ITR-1 or ITR-2. Keep proofs — PPF passbook, ELSS statement, LIC receipts, EPF statement, home-loan certificate and fee receipts. Submit a Form 12BB declaration to your employer during the year so TDS on salary is reduced accordingly.

Retain documentary proof for each item: PPF/SSY passbook entries, ELSS or NSC certificates, life-insurance premium receipts, the EPF annual statement, the lender's home-loan principal certificate, stamp-duty receipts and school tuition-fee receipts. You do not attach these to the ITR, but you must produce them if the return is scrutinised.