{"id":7076,"date":"2025-06-26T06:56:24","date_gmt":"2025-06-26T06:56:24","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7076"},"modified":"2025-06-26T06:56:27","modified_gmt":"2025-06-26T06:56:27","slug":"section-80c","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-80c\/","title":{"rendered":"Section 80C"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80c\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80C<\/a> of the Indian <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a> is a popular provision that allows individuals and Hindu Undivided Families (HUFs) to reduce their <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>able income by making specific investments or expenditures. For the financial year 2024-25 (Assessment Year 2025-26), the maximum deduction available under Section 80C is &#8377;1.5 lakh.<\/p>\n\n\n\n<h2 id=\"what-is-section-80c\" class=\"wp-block-heading\">What is Section 80C?<\/h2>\n\n\n\n<p>Section 80C offers tax deductions on certain investments and <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expenses<\/a>, encouraging taxpayers to save and invest in specified instruments. By utilizing these deductions, one can effectively lower their taxable income, leading to tax savings.<\/p>\n\n\n\n<h2 id=\"key-points\" class=\"wp-block-heading\">Key Points:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Eligibility<\/strong>: Only individuals and HUFs can claim deductions under Section 80C.<\/li>\n\n\n\n<li><strong>Maximum Deduction<\/strong>: Up to &#x20B9;1.5 lakh per financial year.<\/li>\n\n\n\n<li><strong>Tax Regime Applicability<\/strong>: Deductions under Section 80C are available only under the old tax regime.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"list-of-eligible-investments-and-expenses-under-section-80c\" class=\"wp-block-heading\">List of Eligible Investments and Expe<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>nse<\/a>s under Section 80C:<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Public Provident Fund (PPF)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>A long-term savings scheme with a 15-year lock-in period.<\/li>\n\n\n\n<li>Interest earned is tax-free.<\/li>\n\n\n\n<li>Maximum investment: &#x20B9;1.5 lakh per year.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Employee Provident Fund (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/epf\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>EPF<\/a>)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Applicable to salaried individuals.<\/li>\n\n\n\n<li>Employee&#x2019;s contribution is eligible for deduction.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/national-savings-certificate\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">National Savings Certificate<\/a> (NSC)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>A fixed-income investment with a 5-year lock-in.<\/li>\n\n\n\n<li>Interest is taxable but deemed reinvested, qualifying for deduction.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Equity<\/a> Linked Savings Scheme (ELSS)<\/strong>:\n<ul class=\"wp-block-list\">\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Mutual fund<\/a>s with a 3-year lock-in period.<\/li>\n\n\n\n<li>Potential for higher returns due to equity exposure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Life Insurance Premiums<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Premiums paid for policies on self, spouse, or children.<\/li>\n\n\n\n<li>Policies must adhere to specified conditions regarding sum assured and premium amount.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sukanya Samriddhi Yojana (SSY)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Savings scheme for a girl child.<\/li>\n\n\n\n<li>Interest earned and maturity amount are tax-free.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Senior Citizens Savings Scheme (SCSS)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>For individuals aged 60 and above.<\/li>\n\n\n\n<li>5-year lock-in period, extendable by 3 years.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>5-Year Tax-Saving <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/fixed-deposit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Fixed Deposit<\/a>s<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Offered by banks and post offices.<\/li>\n\n\n\n<li>Interest earned is taxable.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Unit Linked Insurance Plans (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ulip\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>ULIP<\/a>s)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Combines investment and insurance.<\/li>\n\n\n\n<li>Minimum lock-in period of 5 years.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Tuition Fees<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Paid for full-time education of up to two children.<\/li>\n\n\n\n<li>Applicable for schools, colleges, or unive<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/rsi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>rsi<\/a>ties in India.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Principal Repayment on Home Loan<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Only the principal component of EMIs is eligible.<\/li>\n\n\n\n<li>Interest component qualifies under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-24\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 24<\/a>(b).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Stamp Duty and Registration Charges<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Paid during the purchase of a residential property.<\/li>\n\n\n\n<li>Claimable in the year of payment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Bonds<\/a><\/strong>:\n<ul class=\"wp-block-list\">\n<li>Previously eligible under a separate section; currently, specific bonds notified by the government may qualify.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Pension System (NPS)<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Contributions qualify under Section 80CCD(1) within the &#x20B9;1.5 lakh limit.<\/li>\n\n\n\n<li>An additional &#x20B9;50,000 deduction is available under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80ccd1b\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80CCD(1B)<\/a>.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 id=\"summary-table\" class=\"wp-block-heading\">Summary Table:<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Investment\/Expense<\/th><th>Lock-in Period<\/th><th>Tax Treatment<\/th><\/tr><\/thead><tbody><tr><td>Public Provident Fund (PPF)<\/td><td>15 years<\/td><td>EEE (Exempt-Exempt-Exempt)<\/td><\/tr><tr><td>Employee Provident Fund (EPF)<\/td><td>Until retirement<\/td><td>EEE<\/td><\/tr><tr><td>National Savings Certificate (NSC)<\/td><td>5 years<\/td><td>Interest taxable<\/td><\/tr><tr><td>Equity Linked Savings Scheme (ELSS)<\/td><td>3 years<\/td><td>LTCG taxed above &#x20B9;1 lakh<\/td><\/tr><tr><td>Life Insurance Premiums<\/td><td>Varies<\/td><td>Tax-free under conditions<\/td><\/tr><tr><td>Sukanya Samriddhi Yojana (SSY)<\/td><td>Until age 21<\/td><td>EEE<\/td><\/tr><tr><td>Senior Citizens Savings Scheme (SCSS)<\/td><td>5 years<\/td><td>Interest taxable<\/td><\/tr><tr><td>5-Year Tax-Saving Fixed Deposits<\/td><td>5 years<\/td><td>Interest taxable<\/td><\/tr><tr><td>Unit Linked Insurance Plans (ULIPs)<\/td><td>5 years<\/td><td>Tax-free under conditions<\/td><\/tr><tr><td>Tuition Fees<\/td><td>N\/A<\/td><td>Tax deduction available<\/td><\/tr><tr><td>Home Loan Principal Repayment<\/td><td>N\/A<\/td><td>Tax deduction available<\/td><\/tr><tr><td>Stamp Duty &amp; Registration Charges<\/td><td>N\/A<\/td><td>Tax deduction available<\/td><\/tr><tr><td>Infrastructure Bonds<\/td><td>Varies<\/td><td>As per government notification<\/td><\/tr><tr><td>National Pension System (NPS)<\/td><td>Until retirement<\/td><td>Additional &#x20B9;50,000 deduction<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"important-notes\" class=\"wp-block-heading\">Important Notes:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Documentation<\/strong>: Ensure to keep receipts, account statements, and other relevant documents as proof of investments and payments.<\/li>\n\n\n\n<li><strong>Timing<\/strong>: Investments must be made within the financial year (April 1 to March 31) to claim deductions for that year.<\/li>\n\n\n\n<li><strong>Combined Limit<\/strong>: The combined maximum deduction under Sections 80C, 80CCC, and 80CCD(1) is &#x20B9;1.5 lakh. However, an additional &#x20B9;50,000 can be claimed under Section 80CCD(1B) for NPS contributions.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"example\" class=\"wp-block-heading\">Example:<\/h2>\n\n\n\n<p>If you invest &#x20B9;1.5 lakh in a combination of PPF, ELSS, and life insurance premiums, and an additional &#x20B9;50,000 in NPS, you can claim a total deduction of &#x20B9;2 lakh (&#x20B9;1.5 lakh under Section 80C and &#x20B9;50,000 under Section 80CCD(1B)).<\/p>\n\n\n\n<p>By strategically planning your investments and expenses under Section 80C, you can effectively reduce your taxable income and save on taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 80C of the Indian <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Act is a popular provision that allows individuals and Hindu Undivided Families (HUFs) to reduce their taxable income by making specific investments or expenditures. For the financial year 2024-25 (Assessment Year 2025-26), the maximum deduction available under Section 80C is &#x20B9;1.5 lakh. What is Section 80C? Section 80C [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7076","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7076\/revisions"}],"predecessor-version":[{"id":7077,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7076\/revisions\/7077"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}