Section 80C of Income Tax Act - 80C Deduction List

Updated on: Feb 23rd, 2026

4 min read

Section 80C is one of the most popular tax-saving deductions in India. Under the old regime, there is a variety of deductions available against certain investments and expenditures. Popular options are insurance premiums, PPF, home loan principal repayment, ELSS mutual funds and Sukanya Samriddhi Yojana.

Key Highlights
Up to Rs. 1.5 lakhs of deduction can be claimed under section 80C.
Section 80C deduction is are not available under the new regime.
It is important to make the tax saving investments early in the financial year for lesser TDS and more disposable income.

What is Section 80C?

Section 80C of the Income Tax Act 1961 is a key provision that offers tax deduction benefits to taxpayers by reducing their gross total income, effectively lowering their taxable income and their overall tax liability for the financial year. Section 80C continues to be one of the most popular options in the old tax regime for the following reasons.

Variety of investment options: Like life insurance, provident fund, fixed deposit, government backed investments like national savings certificate, etc.
Span of investment: For many 80C investments, the investment horizon is 5 years, which is comparatively less than pension funds.
Promotes tax savings and financial planning: These specified investments assists in smart financial planning and saving taxes at the same time.
Protection against inflation: These investments often have returns more than the inflation trend of the economy. This helps the taxpayers to beat the inflation while saving.

These deductions can significantly reduce taxpayers' taxable income, resulting in substantial tax savings.

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

Sections 80CCC and 80CCD provide deductions for investments in pension schemes. The combined maximum deduction allowed under Sections 80C, 80CCC, and 80CCD(1) is ₹1.5 lakh. However, you can claim an additional deduction of ₹50,000 under Section 80CCD(1B) for contributions made to the National Pension Scheme (NPS).

Therefore, the total maximum deduction available under Sections 80C, 80CCC, 80CCD(1), and 80CCD(1B) is ₹2 lakh.

Sections	Eligible investments for tax deductions	Maximum Deduction
80C	Investment made in Equity Linked Saving Schemes (ELSS), PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.	Rs 1,50,000
80CCC	Payment made towards pension funds	Rs 1,50,000
80CCD(1B)	Payments made towards Atal Pension Yojana or other pension schemes notified by government	Employed: 10% of basic salary + DA Self-employed: 20% of gross total income
80CCE	Overall combined limit of ₹1,50,000 for 80C + 80CCC + 80CCD(1)	Rs 1,50,000

List of Investments Eligible Under Section 80C (FY 2025–26)

Section 80C of the Income Tax Act allows several benefits to lower the overall taxable income of the taxpayer. Section 80C deductions include:

Life Insurance Premiums
Public Provident Fund (PPF)
National Savings Certificates (NSC)
Equity-Linked Savings Scheme (ELSS)
Sukhanya Samriddhi Yojana (SSY)
Tuition fees
Home loan principal repayment

Best Tax-Saving Investment Options Under 80C

The following table compares the various features of section 80C deduction options, easy for taxpayers to choose the most suitable option for them.

Investment options	Average Interest	Lock-in period	Risk factor
ELSS funds	12% – 15%	3 years	High
NPS Scheme	8% – 10%	Till 60 years of age	High
ULIP	8% – 10%	5 years	Medium
Tax saving FD	Up to 8.40%	5 years	Low
PPF	7.90%	15 years	Low
Senior citizen savings scheme	8.60%	5 years (can be extended for other 3 years)	Low
National Savings Certificate	7.90%	5 years	Low
Sukanya Samriddhi Yojana	8.50%	Till girl child reaches 21 years of age (partial withdrawal allowed when she reached 18 years)	Low

The maximum section 80C deduction limit is Rs. 1.5 lakh per Financial Year for all the above deductions combined.

Who Can Claim Section 80C Deductions?

Only individuals and HUFs are eligible to claim Section 80C deductions. Companies, Firms, LLPs, etc. are not allowed to claim the Section 80C deductions.

Current Limitations

The ceiling limit of Rs. 1.5 lakh was fixed in the year 2014, more than 10 years now. More often than not, taxpayers and professionals alike opine that the aforesaid limit is quite outdated. Investments in very few options easily exhausts the maximum limit. Therefore, a relaxation of limits will help taxpayers to optimize tax deductions and maximize their returns.

Is 80C Allowed under the New Regime?

No, deductions under section 80C is not allowed under the new regime.

How to Claim Section 80C Deductions?

It is important to understand and comply with the following points to claim Section 80C deductions:

Invest in eligible instruments before 31st March of the financial year.
Collect proofs such as deposit slips, insurance premium receipts, ELSS statements, etc.
Declare investments to your employer to adjust TDS.
File ITR and report investments under “Deductions under Chapter VI-A”.

You can use ClearTax tax filing tool to help you claim deductions and ensure easy tax filing and compliance. Our tax experts can make your tax filing simpler.

80c deductions

How to Save Tax Under Section 80C?

Let us understand how section 80C helps in reducing tax implications using an example.

Mr. A has a salary income of Rs. 10 lakhs and other income of Rs. 1 lakh. He has invested Rs. 1.5 lakh in PPF.

The difference in tax implications when 80C deductions are claimed and not claimed is explained below:

Particulars	Section 80C Deduction claimed	Section 80C Deduction not claimed
Salary Income	10,00,000	10,00,000
Less - Standard Deduction	(50,000)	(50,000)
	9,50,000	9,50,000
Other Income	1,00,000	1,00,000
Gross Total Income	10,50,000	10,50,000
Less - Section 80C deduction	(1,50,000)	-
Taxable Income	9,00,000	10,50,000
Total Tax payable (including cess)	96,200	1,32,600

Therefore, by claiming a deduction of Rs. 1.5 lakh under Section 80C, Mr. A has saved Rs. 36,400 in taxes under the old tax regime.

Use ClearTax's free Income Tax Calculator to optimize tax savings and determine taxes.

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?

Yes, 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.

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) allows deductions for NPS contributions at a maximum of 10% (20% for self employed) of basic salary plus dearness allowance, subject to Rs 1.5 lakh maximum limit of section 80C.

What is section 80CCD(2)?

Section 80CCD(2) allows deductions for employers' contributions made to the pension scheme, 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.

What is the maximum Section 80C deduction limit?

The maximum section 80C deduction limit available to a taxpayer is Rs. 1,50,000 per financial year.

Can NRIs claim Section 80C?

Yes, NRIs can claim Section 80C deductions for eligible instruments like Life Insurance, ELSS.

Can I invest more than Rs. 1.5 lakh?

Yes, but deduction will be limited to Rs. 1.5 lakh.

Is FD eligible under 80C?

If the tenure of the FD is equal to or greater than 5 years (typically called tax saving FDs), deduction is allowed under section 80C.

Can tuition fees be claimed under 80C?

Yes, tuition fees paid to a university, college, school or other educational institution in India for full-time education can be claimed as a deduction under section 80C

Are ULIPs under 80C?

ULIPs can be claimed as a deduction under section 80C

Can NRIs claim 80C?

Yes. NRIs can claim deduction under section 80C.

What is Setion 80CCE?

Section 80CCE prescribes that the combined limit under section 80C, 80CCC and 80CCD(1) does not exceed Rs. 1.5 lakhs.

About the Author

CA Mohammed S Chokhawala

Content Writer

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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