What is Section 80C? What are various subsections of 80C?

Modified on Fri, 28 Apr 2023 at 02:31 PM

80C is one of the most known income Sections. It is helpful in reducing the taxable income. A maximum deduction of INR 1.5 lakhs is allowed (except an additional deduction of INR 50,000 under subsection 80CCD(1b) for contributions to the NPS.

Investment options	Lock-in period for
Equity Linked Saving Scheme (ELSS)	3 years
National Pension Scheme (NPS)	Till 60 years of age
Unit Linked Investment Plan (ULIP)	5 years
Tax saving FD	5 years
Public Provident Fund (PPF)	15 years
Senior citizen savings scheme	5years (can be extended for other 3 years)
National Savings Certificate (NSC)	5 years
Sukanya Samriddhi Yojana (SSY)	Till girl child reaches 21 years of age (partial withdrawal allowed when she reaches 18 years)
Life Insurance/Medical Insurance Policies	Based on Maturity Term
Employee's Provident Fund (EPF)	Till Retirement

80C includes subsections such as, 80CCC, 80CCD (1), 80CCD (1b) and 80CCD (2).

Sections/Sub-Sections	Eligible Investments for Tax Deductions
80C	PPF, EPF, LIC Premium, ELSS, SSY, SCSS, NSC, tax saving FD, principal amount towards home loan, stamp duty and registration charges for purchase of property, etc.
80CCC	Payment made to receive pension in future such as towards pension plans of insurance companies and mutual funds
80CCD(1)	Deduction from the salary for retirement savings
80CCD(1b)	Additional deduction of Rs. 50,000 under NPS account. Contribution to Atal Pension Yojna is also eligible
80CCD(2)	Employer's contribution is allowed for deduction upto 10% of basic salary and dearness allowance. Only salaried individuals are eligible