Section 80C
A deduction of up to ₹1.5 lakh a year for specified investments and expenses like PPF, ELSS, life insurance premiums, and children's tuition fees, available only under the old tax regime.
Section 80C lets a taxpayer reduce taxable income by up to ₹1.5 lakh a year through a defined list of eligible investments and payments: PPF contributions, ELSS mutual funds, life insurance premiums, principal repayment on a home loan, children's tuition fees, five-year tax-saving fixed deposits, and several others. The ₹1.5 lakh cap applies to the combined total across all these items, not separately to each.
This deduction, along with most of Chapter VI-A, is only available if you choose the old tax regime when filing. The new regime offers lower slab rates but removes 80C and most similar deductions, so the choice between the two regimes usually comes down to comparing actual eligible deductions against the new regime's lower rates rather than assuming one is universally better. Note the Income Tax Act, 2025 has renumbered many of these provisions, though '80C' remains the commonly used shorthand.
This glossary entry is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Rules and rates change, so consult a qualified Chartered Accountant for advice specific to your situation.