Income Tax
Section 80C
Income tax deduction allowing up to ₹1.5 lakh on specified investments and payments.
Full Definition
Section 80C of the Income Tax Act provides a deduction of up to ₹1.5 lakh from gross taxable income for specified investments and payments including: ELSS, PPF, LIC premiums, EPF contributions, NSC, 5-year tax-saver FD, home loan principal repayment, children's tuition fees, Sukanya Samriddhi Yojana, and ULIP. The deduction is available only under the old tax regime — not the new regime. It is combined with 80CCC (annuity) and 80CCD(1) (NPS), subject to the ₹1.5L aggregate cap.
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).