GlossaryDTWhat is Section 80C?
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What is Section 80C?

Section 80C is a deduction of up to Rs.1.5 lakh a year for specified investments and payments, available only under the old tax regime.

Bare Law Reference: Section 80C, Income-tax Act.

Detailed Explanation

How it works

Eligible items include EPF, PPF, ELSS, life-insurance premium, principal repayment of a home loan, and children's tuition fees. It is not available under the new regime.

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Income-tax Act 2025 update: Section 80C of the 1961 Act is now Section 123 under the new Income-tax Act 2025, effective 1 April 2026. Rates and thresholds discussed below remain applicable unless stated.

Frequently asked questions

What is the 80C limit?

Up to Rs.1.5 lakh a year for specified investments and payments, under the old regime.

Is 80C available in the new regime?

No. Section 80C and most Chapter VI-A deductions are not allowed under the new regime.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • 80C: up to Rs.1.5 lakh deduction (old regime).
  • Covers EPF, PPF, ELSS, insurance, home-loan principal.
  • Not available under the new regime.