Section 80C
Tax & DeductionsSection 80C allows up to Rs 1.5 lakh deduction from taxable income for specified investments and expenses. The most widely used individual tax deduction. Only available under old tax regime.
In detail
Eligible: EPF (mandatory, auto-counts), PPF, ELSS mutual funds, NSC, 5-year tax-saving FD, NPS (partial), SSY, life insurance premium, home loan principal, children's tuition fees (up to 2 children). Check EPF contribution before buying additional 80C products.
Formula
Tax saved = Min(actual 80C, Rs 1.5L) x Tax ratenAt 30% bracket: Rs 45,000 saved
Real-life example
🇮🇳 India example
Vinita: EPF Rs 43,200 + PPF Rs 50K + ELSS Rs 56,800 = Rs 1.5L. Maxed. Tax saved at 20% bracket = Rs 30,000. Not a rupee wasted.
Frequently asked questions
Is 80C available under new tax regime? ▼
No. Only available under old tax regime. This is a key factor when choosing which regime to file under.