Section 80C of the Income Tax Act allows tax deduction benefits to the taxpayer up to 1.5 lakhs INR on various schemes and investments. It includes life insurance premiums, loan principal repayment, Sukanya Samriddhi Yojana ELSS mutual funds, and many more.
From 1 April 2025, the limit for tax deduction is increased to 2 lakhs from 1.5 lakh. However, no relations were made and no changes were applied with respect to the 80C budget.
80C Section is considered best for tax saving deductions in the old tax regime for the given reasons below:
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What is the process to claim deductions under Section 80C?
I have claimed my deductions for those investments that have been filed in my ITR without submitting proof to my employer. However, for this, the investments should be made before the end of the financial year.
Here is the detailed process to claim your deduction under Section 80C of the Income Tax Act: