Asymmetrica Glossary

Section 80C

Also called: 80C, §80C, Sec 80C

An income-tax deduction of up to ₹1.5 lakh per year for specified investments and expenses, including life insurance premiums.

Section 80C of the Income Tax Act, 1961, lets individuals and HUFs deduct up to ₹1.5 lakh from gross taxable income each financial year for specified investments and expenses. Eligible items include EPF, PPF, ELSS, ULIP and traditional life insurance premiums, NSC, tax-saving FDs, home loan principal repayment, and tuition fees for up to two children.

For life insurance premiums to qualify, the Sum Assured must be at least 10× the annual premium (for policies issued after 1 April 2012). §80C is only available under the old tax regime — opting for the new regime (default from FY 2023-24) forfeits this deduction.

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