TL;DR for CAs
- Overall 80C limit remains Rs. 1.5 lakh under the old regime.
- Combine ELSS, PPF, life insurance, EPF, and principal repayment carefully.
- Not available under the new tax regime.
What it is
Section 80C allows deduction for specified investments and payments, subject to an aggregate ceiling of Rs. 1.5 lakh.
Who it applies to
Individuals and HUFs opting for the old tax regime.
Key provisions
- Eligible: PPF, ELSS, life insurance premium, tuition fees, home loan principal, NSC, SCSS (as applicable)
- Coordinate with 80CCD(1)/(1B) for NPS
- Keep proof of payment for assessment years
Practical tips for CAs
Build a year-end checklist: EPF statements, insurance receipts, tuition fee challans, and loan principal certificates. Flag clients who over-allocate to low-liquidity instruments.
Common mistakes
Claiming premium beyond 10% of sum assured; mixing 80C with 80D incorrectly; claiming under new regime.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.