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Sections 80C, 80CCC, and 80CCD are among the most widely used income tax provisions for reducing taxable income under the old tax regime. These sections cover common investments such as provident funds, insurance, pension plans, and retirement schemes. Knowing how each section works, their limits, and eligibility rules helps taxpayers plan investments better and avoid missing valid deductions while filing returns.
Under the Income Tax Act, 1961, Section 80C provides deductions on specific investments and expenses. These income tax deductions help reduce taxable income through approved instruments and payments. You can claim deductions of up to INR 1.5 lakh under this provision. Section 80C benefits are available only under the old tax regime.
Section 80C for FY 2025–26 specifies investments and expenses that qualify for tax deductions. Below is the income tax deduction list under Section 80C.
Investment
Deduction and Tax Treatment
Public Provident Fund (PPF)
You can claim deduction up to INR 1.5 lakh per year. Interest and maturity amount are fully tax-free.
Equity-Linked Savings Scheme (ELSS)
Deductions can be claimed for up to INR 1.5 lakh. Long-term capital gains above INR 1 lakh are taxed at 10 percent.
National Savings Certificate (NSC)
You can claim deduction for the amount invested. Accrued interest except in the final year also qualifies. The maturity amount is fully taxable.
5-Year Tax-Saving Fixed Deposit
You can claim deduction up to INR 1.5 lakh. Interest earned is fully taxable.
Sukanya Samriddhi Yojana (SSY)
Senior Citizens Savings Scheme (SCSS)
Unit Linked Insurance Plans (ULIPs)
You can claim deduction for premiums within limits. Maturity proceeds are tax-free if policy conditions are met.
Expense
Employee Provident Fund (EPF)
Employee contribution qualifies for deduction up to INR 1.5 lakh. Interest is taxable above prescribed limits.
Life Insurance Premium
Premium paid qualifies for deduction within limits. Maturity proceeds are tax-free if conditions are met.
Home Loan Principal Repayment
Principal repaid during the year qualifies for deduction. Deduction is reversed if the property is sold within five years.
Tuition Fees
Actual tuition fees paid for up to two children qualify for deduction.
Stamp Duty and Registration Charges
These qualify for one-time deduction in the year of payment.
This list of deductions applies only to taxpayers who opt for the old tax regime. Eligible taxpayers include:
Section 80CCC allows individuals to claim deductions on payments made toward pension or annuity plans. This falls within the combined deduction limit of Sections 80C, 80CCC, and 80CCD(1), capped at INR 1.5 lakh.
Here are three contributions which qualify for deductions under Section 80CCC:
Contribution Type
Details
Annuity Plans
Payments for immediate/deferred annuities that qualify under 10 (23AAB).
Pension Pans from Approved Insurers
Contributions to IRDAI-regulated life insurers for pension benefits.
Deferred Annuity Purchases
Purchases paid from taxable income, future pension receipts fully taxable.
When applying for deductions under Section 80CCC, it’s important to keep a few key points in consideration.
Section 80CCD relates to tax deductions on contributions made to the National Pension System (NPS) or Atal Pension Yojana (APY). These deductions support retirement planning by reducing taxable income.
Section 80CCD has sub-sections which offer tax benefits for NPS contributions, being aware how each sub section can help reducing your taxable income.
Sub-section
Maximum Deduction
Section 80CCD(1)
Up to 10 percent of salary for salaried individuals or 20 percent of gross total income for self-employed individuals, subject to the overall INR 1.5 lakh limit
Section 80CCD(1B)
Additional deduction up to INR 50,000 over and above the INR 1.5 lakh limit
Section 80CCD(2)
Employer contribution up to 10 percent of salary, allowed separately and not counted within the INR 1.5 lakh limit
The Section 80CCE does not provide a tax deduction, it sets the maximum limit for deductions that can be deducted under Section 80C, Section 80CCC and Section 80CCD (1). These limits form part of the broader income tax exemption list under the old tax regime.
You can claim benefits from the tax deductions list under Sections 80C, 80CCC, and 80CCD by following these steps.
Step 1: Choose eligible investments or expenses
Invest in approved instruments or incur eligible expenses under Sections 80C, 80CCC, or 80CCD.
Step 2: Collect supporting documents
Keep receipts, premium statements, investment proofs, and NPS contribution statements.
Step 3: Submit proofs to your employer
If you are salaried, share these documents with your employer within the deadline to get tax benefits through monthly salary deductions.
Step 4: Report deductions while filing your ITR
Enter the eligible amounts from the ITR deduction list in your income tax return.
Step 5: Verify and submit your return
Review all details carefully and complete e-verification to finalise your filing.
Step 6: Retain records for future reference
Keep copies of documents in case the tax department asks for verification later.
Having an instant savings account can make it easier to track investments, receive interest credits, and manage deduction-related transactions throughout the year.
Sections 80C, 80CCC, and 80CCD help reduce taxable income while supporting long-term savings and retirement planning. Choosing the right mix of investments and tracking deductions can improve both tax efficiency and financial stability. To manage your savings and investments more easily, you can also open bank account with DBS Bank and access tools that support smarter financial planning.
Yes. You can claim deductions under both sections. However, deductions under Section 80C and Section 80CCD(1) together are capped at INR 1.5 lakh under Section 80CCE. In addition, you can claim up to INR 50,000 separately under Section 80CCD(1B).
Section 80CCC applies to investments in approved pension or annuity plans from insurers, while Section 80CCD applies to contributions made to the National Pension System (NPS) or Atal Pension Yojana (APY). Both offer retirement-related tax benefits, but they apply to different products and contribution structures.
