Glossary · Income Tax
Section 80C
Deduction of up to ₹1.5 lakh per year on specified investments and expenses such as EPF, PPF, ELSS, life insurance, home-loan principal, and tuition fees.
Section 80C of the Income Tax Act allows individual and HUF taxpayers to deduct up to ₹1.5 lakh from gross total income. Eligible investments include EPF and VPF contributions, PPF, NSC, ELSS mutual funds, life-insurance premium, 5-year tax-saver FDs, Sukanya Samriddhi Yojana, home-loan principal repayment, tuition fees for up to two children, and stamp duty and registration charges for a first home. The deduction is available only under the old regime.
Examples
A salaried employee contributing ₹50,000 to EPF, ₹50,000 to PPF, and ₹50,000 to ELSS in a year claims the full ₹1.5 lakh under Section 80C.