Tax
Section 80C Meaning: ₹1.5L Tax Deduction Options Explained
Quick answer
The most popular tax deduction, letting you cut up to ₹1.5L from taxable income via approved investments.
Section 80C lets you reduce your taxable income by up to ₹1.5L a year by investing in approved options.
Eligible choices include ELSS, PPF, EPF, life insurance premiums, tax-saving FDs, and home loan principal.
It only works under the old regime. The new regime scraps it in exchange for lower rates.
For example
Investing ₹1.5L in ELSS and PPF combined can cut your taxable income by ₹1.5L, saving up to ₹46,800 in the old regime.
Gen Z practical guide
Skip the textbook — Section 80C guide →Common questions
- What is Section 80C deduction?
- Section 80C lets you reduce taxable income by up to ₹1.5 lakh per year through approved investments like PPF, ELSS, EPF, and life insurance premiums — only under the old tax regime.
- Does Section 80C work in the new tax regime?
- No. The new regime does not allow 80C deductions. You get lower slab rates and a ₹75,000 standard deduction instead.