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    Section 80C deductions (80C)

    Section 80C lets an individual or HUF deduct up to Rs 1,50,000 a year from total income for a basket of approved savings and payments, EPF and PPF, ELSS funds, life-insurance premiums, NSC, 5-year tax-saver fixed deposits, Sukanya Samriddhi, home-loan principal repayment and children's tuition fees. It is available only under the old regime, and the Rs 1.5 lakh is a combined ceiling shared with Sections 80CCC and 80CCD(1). The extra Rs 50,000 NPS deduction under 80CCD(1B) sits on top, separately.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →

    What this relief is, in plain English

    Think of Section 80C as a single Rs 1.5 lakh box that many of your existing savings and payments already fill, your provident-fund contributions, the principal portion of your home-loan EMIs, your children's school fees and your insurance premiums often add up to the cap on their own. You do not get extra by paying more into the box once it is full. The catch since the new regime arrived: 80C only works if you choose the old regime, so the real question is whether your total old-regime deductions beat the new regime's higher exemption and Rs 60,000 rebate.

    How it works

    One combined Rs 1.5 lakh ceiling

    Sections 80C, 80CCC (pension funds) and 80CCD(1) (employee NPS) share a single Rs 1,50,000 limit under Section 80CCE. You cannot exceed Rs 1.5 lakh across all three combined, however much you invest.

    What fills the box

    EPF and VPF, PPF, ELSS equity funds, life-insurance premiums (within limits), NSC, 5-year tax-saver bank FDs, Sukanya Samriddhi (girl child under 10), Senior Citizen Savings Scheme, home-loan principal repayment, stamp duty on a new home, and tuition fees for up to two children.

    The separate NPS top-up

    Section 80CCD(1B) allows an additional Rs 50,000 deduction for NPS contributions, over and above the Rs 1.5 lakh 80C ceiling. Employer NPS under 80CCD(2) is separate again and is the one NPS deduction that survives in the new regime.

    Who qualifies

    Interactions with other reliefs

    Section 80CCD(1B) NPS

    Adds Rs 50,000 on top of the 80C cap, do not count it inside the Rs 1.5 lakh

    New regime

    80C is forfeited under the new regime, compare the full old-regime stack against the new regime's Rs 12 lakh tax-free band

    Section 10(14) child allowances

    Tuition can sit in 80C while the child education allowance sits in 10(14), both old-regime

    Common mistakes + audit triggers

    Worked example

    Rohan, Nagpur - salaried marketing manager with a home loan (2026-27)

    Rohan pays Rs 90,000 EPF, Rs 70,000 home-loan principal and Rs 40,000 school fees in the year, and wonders whether to start an ELSS SIP for tax.

    Calculation: His EPF (Rs 90,000) + home-loan principal (Rs 70,000) + tuition (Rs 40,000) total Rs 2,00,000, already above the Rs 1.5 lakh 80C cap, so a new ELSS investment would give him no extra 80C deduction. He could instead use Section 80CCD(1B) for up to Rs 50,000 of NPS, which sits on top of the cap. And before relying on any of this, he should check whether the old regime (with his full stack) actually beats the new regime's Rs 12 lakh tax-free band for his income.

    Statute reference: Income-tax Act 2025 s.123 + Schedule XV (Income-tax Act 1961 s.80C) s.80C / 80CCC / 80CCD(1) within the s.80CCE Rs 1.5 lakh ceiling; 80CCD(1B) separate Rs 50,000. Source / notes: Year-of-Act note: 2025 Act in force for tax year 2026-27.

    Frequently asked questions

    Can I claim Section 80C under the new regime?+
    No. Section 80C, like most Chapter VI-A deductions, is available only under the old regime. Under the new regime you give up 80C but get a higher basic exemption and the Rs 60,000 rebate that makes income up to Rs 12 lakh tax-free. Compare your full old-regime stack against the new regime before deciding.
    How much can I claim under 80C?+
    Up to Rs 1,50,000 a year, and that ceiling is shared with Sections 80CCC and 80CCD(1) under Section 80CCE. Investing beyond Rs 1.5 lakh in 80C instruments gives no extra deduction. The Rs 50,000 NPS deduction under 80CCD(1B) is separate and sits on top.
    Do my EPF and home-loan EMIs count towards 80C?+
    Yes, your EPF contribution and the principal portion of your home-loan EMIs both count towards the Rs 1.5 lakh, as do children's tuition fees. For many salaried people these alone fill or exceed the cap, so check before buying new tax-saving products you do not need.
    What is the difference between 80CCD(1) and 80CCD(1B)?+
    Section 80CCD(1) (employee NPS) sits inside the Rs 1.5 lakh 80C/80CCE ceiling. Section 80CCD(1B) is an additional Rs 50,000 for NPS over and above that ceiling. Employer NPS under 80CCD(2) is separate again and is the only NPS deduction that also works under the new regime.

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