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Section 80C

Background

Section 80C of the Income Tax Act allows individuals to claim deductions on specified investments and expenses, reducing taxable income up to a fixed annual limit.

Explanation

Popular 80C-eligible items include EPF, VPF, PPF, ELSS funds, life insurance premiums, certain pension plans and home loan principal. While tax saving is useful, products should still be chosen for overall suitability, returns and lock-in.

Example

If your taxable income is ₹12 lakh and you invest ₹1.5 lakh in EPF, PPF and ELSS under 80C, your taxable income falls to ₹10.5 lakh, lowering your tax while building long-term savings.

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