Section 80C of the Income-Tax Act provides taxpayers with deduction benefits up to ₹1.5 lakh for investments in certain government saving schemes during a given financial or assessment year. According to reports from Mint, this deduction is available under Section 123 of the updated ITA 2025 and is only accessible to taxpayers filing returns under the old tax regime. The benefit offers dual advantages of interest earnings and tax savings, making it particularly attractive for investors seeking to reduce their tax liability.
Several financial instruments qualify for tax exemption benefits under Section 80C, as reported by Mint. Market-linked investments include Unit-linked Insurance Plans (ULIP) and Equity Linked Saving Schemes (ELSS). Retirement-focused options include Public Provident Fund (PPF), Employees Provident Fund (EPF), Senior Citizens Savings Scheme (SCSS), National Pension Scheme (NPS), and five-year tax-saving fixed deposits. Child-related investments cover Sukanya Samriddhi Yojana (SSY) and tuition fees for up to two children. Personal investments encompass loan principal repayment, Life Insurance Corporation of India (LIC) premiums, registration and stamp duty, and National Savings Certificate (NSC).
Taxpayers can claim additional deductions beyond the basic ₹1.5 lakh limit, according to Mint reports. Section 80CCD(1B) provides an extra ₹50,000 deduction on contributions to specified pension funds, while Section 80TTB offers benefits for tax-saver fixed deposits. When combined with the Section 80C limit, this effectively extends total deductions to ₹2 lakh in a financial year, significantly enhancing tax savings potential.
All investments under Section 80C must be completed before the financial year end, specifically by March 31, as reported by Mint. Taxpayers must maintain proper documentation including deposit slips, bank statements, insurance premium receipts, account statements, NPS deposit invoices, and other relevant proofs for ITR filing submission. The deduction is not available for companies, firms, or LLPs in India, and is exclusively available to individual taxpayers and Hindu Undivided Family (HUF). Under the new tax regime, taxpayers cannot claim these benefits, though they can still make eligible investments without deduction benefits.
