Section 80C: Income Tax Deductions u/s 80C, 80CCC, 80CCD & 80D

By CA Mohammed S Chokhawala

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Updated on: May 16th, 2025

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5 min read

Section 80C of the Income Tax Act provides exemptions or deductions on specific expenditures and investments from income tax. By investing in options like PPF, NSC, ELSS, SSY, etc., you can claim deductions of up to Rs. 1.5 lakh each year under Section 80C, helping you save on income tax. Let us understand these deductions in detail: 

80C Deductions

Section 80C - Deductions and Exemptions on Investments

Section 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses. 

  • Section 80C deduction can be claimed only by Individuals and HUFs.
  • Companies, partnership firms and LLPs cannot avail the benefit of this deduction.
  • Up to Rs.1.5 lakh can be claimed as a deduction every year from the Gross total income.

Section 80C Deductions List 

Investment/PaymentDetails
Employee Provident Fund (EPF)Contributions by employees to EPF are eligible for deduction.
Public Provident Fund (PPF)Deposits to a PPF account (maximum limit ₹1.5 lakh per year).
Life Insurance PremiumPremium paid for life insurance policies for self, spouse, or children.
Equity-Linked Savings Scheme (ELSS)Investments in specified mutual funds with a 3-year lock-in period.
National Savings Certificate (NSC)Investment in NSC qualifies for the deduction. Accrued interest (except for the last year) is also eligible.
5-Year Fixed Deposit with BanksFixed deposits of 5 years or more with scheduled banks.
Sukanya Samriddhi YojanaDeposits made for the benefit of a girl child.
Principal Repayment of Home LoanThe principal portion of the EMI is paid for a home loan.
Stamp Duty and Registration ChargesPaid for a residential property (allowed in the year of purchase).
Tuition FeesPaid for the full-time education of up to two children in India.
Senior Citizens Savings Scheme (SCSS)Investment made by senior citizens in SCSS.
Unit Linked Insurance Plan (ULIP)Premium paid towards ULIP for self, spouse, and children.
Post Office Time Deposit (5 years)Investment in 5-year time deposits at post offices.
Superannuation fundEmployee's contribution to an approved superannuation fund.
Pension PlansContribution to specific pension plans like LIC's Jeevan Suraksha, etc.

For example, an individual could invest Rs. 50,000 in PPF, Rs. 40,000 in ELSS, pay a life insurance premium of Rs. 30,000, and have an EPF contribution of Rs. 30,000, thereby utilizing the full Rs. 1.5 lakh 80C deduction limit.

Deduction Limits under section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)

  • Section 80CCC and Section 80CCD provide deductions for the investments in the pension scheme.
  • The maximum deduction under Section 80C, 80CCC and 80CCD(1) put together is Rs 1.5 lakhs. 
  • However, you may claim an additional deduction of Rs 50,000 allowed u/s 80CCD(1B) for contributions made to NPS(National Pension Scheme). 
  • Thus, the maximum deduction limit is Rs 2 lakhs under Section 80C+80CCC+80CCD(1) + Section 80CCD(1B).

Sections

Eligible investments for tax deductions

Maximum Deduction

80CInvestment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.Rs 1,50,000
80CCCPayment made towards pension fundsRs 1,50,000
80CCD(1) Payments made towards Atal Pension Yojana or other pension schemes notified by governmentEmployed: 10% of basic salary + DA    
Self-employed: 20% of gross total income
80CCETotal deduction under Section 80C, 80CCC, 80CCD(1)Rs 1,50,000
80CCD(1B) Investments in NPS (outside Rs 1,50,000 limit under Section 80CCE)Rs 50,000
80CCD(2) Employer’s contribution towards NPS (outside Rs 1,50,000 limit under Section 80CCE)Central government employer: 14% of basic salary +DA    
Others: 10% of basic salary +DA

Section 80TTA – Interest on Savings Accounts

  • Section 80TTA deduction can be claimed by an individual or HUF. 
  • Maximum deduction allowed under section 80TTA is Rs 10,000

Section 80TTB – Interest From Deposits Held by Senior Citizens

  • Section 80TTB deduction can be claimed by a resident senior citizen aged 60 years and above at any time during the financial year.
  • Maximum deduction allowed under section 80TTB is Rs 50,000 

Section 80GG – Income Tax Deduction on House Rent Paid

  • Those who do not receive HRA in their salary structure but live in rented accommodation are eligible to claim deduction under Section 80GG.
  • Deduction can be claimed subject to limits prescribed under the act.

Section 80E – Interest on Education Loan

  • An individual who has taken education loan for higher education is eligible to claim interest deduction under Section 80E.
  • The education loan can be taken for the taxpayer, their spouse or children or for a student for whom the taxpayer is a legal guardian.

Section 80EEA – Interest on Home Loan For First-Time Home Owners

  • Section 80EEA, which provides taxpayers with an extra deduction for paying interest on a house loan. 
  • This section provides a tax exemption of up to Rs1.5 lakhs per financial year to individuals on the interest paid on home loans for purchasing/constructing an affordable house. 

80EE- Interest on Home Loan For First-Time Home Owners

  • The deduction under section 80EE is available only to home-owners (individuals) having only one house property on the date of sanction of the loan.
  • This deduction can be claimed from FY 2016-17 and onwards only if the loan has been taken in FY 2016-17.

Section 80EEB - Interest paid on Electric Vehicle Loan

  • To encourage the purchase and usage of electric vehicles, deduction u/s 80EEB  is allowed for interest paid on vehicle loan availed to purchase the electric vehicles
  • Up to Rs.1.5 lakhs of deduction can be claimed.

Section 80D – Deduction on Medical Insurance Premium

  • Deduction on medical insurance premium, medical expenses for senior citizens, and preventive health check-up can be claimed under section 80D.

The maximum limits for deduction under section 80D is given in below table.

Policy forDeduction for     
self & family
Deduction for parentsPreventive Health check-upMaximum Deduction
Self & Family    
(below 60 years)
25,000-5,00025,000
Self & Family + Parents    
(all of them below 60 years)
25,00025,0005,00050,000
Self & Family (below 60 years)     
+ Parents (above 60 years)
25,00050,0005,00075,000
Self & Family + Parents    
(above 60 years)
50,00050,0005,0001,00,000

Section 80DD – Deduction for Medical Treatment of a Dependent with Disability

  • Section 80DD deduction is available to a resident individual or a HUF.
  • Expenditure incurred on medical treatment, training and rehabilitation of specially-abled dependent relative can be claimed as a deduction under this section.

Section 80DDB – Deduction for Medical Treatment etc

  • 80DDB deduction is available to a resident individual or a HUF. 
  • You can get a deduction for any money you spend on medical treatments for yourself or your dependents under this section.

Section 80U – Deduction for Disabled Individuals

  • A deduction of Rs.75,000 is available under section 80U to a resident individual who suffers from a physical disability (including blindness) or mental retardation. 
  • In case of severe disability, one can claim a deduction of Rs 1.2 lakhs.

Section 80G – Income Tax Benefits Towards Donations for Social Causes

  • The various donations specified in u/s 80G are eligible for deduction up to either 100% or 50% with or without restriction.
  • Any donations made in cash exceeding Rs 2,000 will not be allowed as a deduction. 
  • Donations above Rs 2000 should be made in any mode other than cash to qualify for an 80G deduction.

Section 80GGB – Company Donation to Political Parties

  • Section 80GGB deduction is allowed to an Indian company for the amount contributed by it to any political party or an electoral trust. 
  • A deduction is allowed for donations done by any mode of payment other than cash.

Section 80GGC – Deduction on Donations By a Person to Political Parties

  • Section 80GGC provides deduction for any amount donated to a political party or an electoral trust. 
  • You can avail this deduction only if you pay by any mode other than cash. 
  • Only an individual taxpayer can claim deduction under section 80GGC.

Section 80RRB – Deduction on Income via Royalty of a Patent

  • 80RRB Deduction for any income by way of royalty for a registered patent shall be available for up to Rs.3 lakh or the income received, whichever is less. 
  • The taxpayer must be an individual patentee and an Indian resident. 

Section 80QQB – Deduction on Royalty Income of Authors

  • Authors of India who are earning royalty or copyright income are eligible to claim deduction under section 80QQB.
  • Maximum of Rs. 3 lakh can be claimed as a deduction under this section. But the deduction claimed should not exceed the income received.

Final Word

While there are several tax-saving deductions under Chapter VI-A, taxpayers should carefully select the options that best align with their financial goals, ensuring both tax efficiency and long-term benefits. 

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Frequently Asked Questions

Can I claim the 80C deductions at the time of filing the return in case I have not submitted proof to my employer?

Yes. You can still claim those investments when you file your income tax return if not submitted to your employer. Just make sure the investments were made before the end of the financial year, i.e 31st March 2025

I have made an 80C investment on 30 April 2025. For which year can I claim this investment as a deduction?

You can claim deduction for the investments made in the ITR of that financial year. So, let's say you made an investment on April 30, 2025, you can claim it as a deduction when filing your taxes for the FY 2025-2026.

Can a company or a firm take benefit of Section 80C?

The provisions of Section 80C apply only to individuals or a Hindu Undivided Family (HUF). Hence, a company or a firm cannot take benefit of Section 80C.

I have been paying life insurance premiums to a private insurance company. Can I claim an 80C deduction for the premium paid?

You can get a deduction under Section 80C when you pay life insurance premiums to any insurance company approved by the Insurance Regulatory and Development Authority of India, whether they are public or private. So, the premiums you pay to private insurance companies can also help you claim an 80C deduction.

In which year can I claim a deduction of the stamp duty paid for the purchase of a house property?

You can go ahead claiming the stamp duty for the purchase of a house in the year in which the payment is made towards stamp duty under Section 80C.

What do you mean by 80C deduction under chapter VI A?

Investments made in specified modes are eligible for deduction under section 80C. Popular investments eligible for this deduction are investment in Public Provident Fund (PPF), National saving certificate (NSC), Sukanya Samriddhi Yojana (SSY), etc., 

What is section 80CCD(1)?

Section 80CCD (1) is a deduction for making contributions to the National Pension scheme. An employee can claim deduction under 80CCD(1) at a maximum of 10% of basic salary plus dearness allowance. For self employed, the limit for deduction is 20% of their income subject to Rs 1.5 lakh maximum limit of section 80C.

What is section 80CCD(2)?

Section 80CCD deals with tax deductions available to employers with respect to contributions made to the pension scheme for its employees. i.e. if your employer contributes to its employees pension account, deduction, maximum up to 14% (under new regime) and 10% (under old regime) of total income can be availed.

Can I claim both 80C and 80D?

Yes. You can claim deductions under both sections 80C and 80D of the Income Tax Act, 1961. 

About the Author
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CA Mohammed S Chokhawala

Content Writer
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I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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