Tax Planning & Deductions
Section 80C Deductions 2024-25 — Save Up to ₹46,800 in Tax
Section 80C of the Income Tax Act allows you to reduce your taxable income by up to ₹1,50,000 per year through eligible investments and expenses. Here's everything you need to know — and how we help you maximise it.
What is Section 80C?
Section 80C is the most popular tax-saving section under the Income Tax Act. It allows individuals and HUFs to claim a deduction of up to ₹1.5 Lakh from their total taxable income, reducing their overall tax liability. It is important to note that this deduction is only available under the Old Tax Regime.
List of 80C Eligible Investments and Expenses
You can claim deductions by investing in or spending on the following:
- PPF (Public Provident Fund): EEE status (Exempt on investment, interest, and maturity).
- ELSS Mutual Funds: 3-year lock-in period, market-linked returns.
- EPF (Employee Provident Fund): Both employer and employee contributions.
- Life Insurance Premium: Premiums paid for LIC or term plans.
- 5-year Tax Saving FD: Fixed deposits with banks or post offices.
- NSC (National Savings Certificate): Safe, government-backed.
- ULIP (Unit Linked Insurance Plan): Combines insurance with investment.
- Home Loan Principal Repayment: The principal portion of your EMI.
- Children's Tuition Fees: Up to 2 children for full-time education.
- Sukanya Samriddhi Yojana: For the girl child.
- Senior Citizen Savings Scheme: High interest for senior citizens.
How Much Tax Can You Save with 80C?
Your actual tax savings depend on your income tax slab:
- At 30% slab: Save up to ₹46,800 (including 4% cess).
- At 20% slab: Save up to ₹31,200.
- At 5% slab: Save up to ₹7,800.
80C + Other Deductions Together
To maximize savings, combine 80C with other sections:
- 80D: Up to ₹25,000 for medical insurance (₹50,000 for senior citizens).
- 80CCD(1B): Additional ₹50,000 deduction for National Pension System (NPS).
- Section 24(b): Up to ₹2L for interest paid on a home loan.
Old vs New Regime — Is 80C Still Worth It?
Section 80C is only available in the Old Tax Regime. The New Regime offers lower tax rates but fewer deductions. If your total deductions (80C, 80D, HRA, home loan) are high, the Old Regime usually results in lower tax. We calculate both scenarios to ensure you choose the best regime.
Our Service
We provide comprehensive tax planning consultation and ITR filing, ensuring all your deductions are correctly claimed and you get the maximum possible benefit.
Frequently Asked Questions
No, Section 80C deductions are only available under the Old Tax Regime. Under the New Regime, you get lower tax slabs but cannot claim most deductions.
The 80C deduction limit remains ₹1,50,000 for FY 2024-25. Combined with 80CCD(1B) for NPS, you can claim up to ₹2,00,000 in deductions.
Yes, you can split your ₹1.5L limit across multiple options like PPF + ELSS + LIC. We help you choose the right mix based on your risk appetite and liquidity needs.
Ready to Get Started?
Tell us your requirement and we'll help you understand the right next step.