Section 80C Deductions: Who Qualifies and What You Get
Learn how to reduce your taxable income by investing in specific schemes under Section 80C.
Section 80C deductions allow you to lower the amount of your income that is subject to tax by investing in specific government-approved schemes.
Who it's for
This is available to individuals who choose to use the old tax regime instead of the new one.
What you get
You can reduce your taxable income by an amount up to ₹1.5 lakh through qualifying investments.
What it costs you
While you receive a tax benefit, your money is often tied up for a certain amount of time. Different investment options have different lock-in periods, meaning you may not be able to withdraw your funds for several years.
The catch to know
It is important to pay attention to how long your money is locked away. For example, some options like ELSS have a much shorter lock-in period than other choices like PPF.
How to apply
- Choose an investment option that fits your financial goals.
- Invest the desired amount before the end of the financial year.
- Keep your investment receipts as proof for tax filing.
- Report these investments when you file your tax returns.