How to Unlock Rs. 1.5 Lakh Tax Deductions Under Section 80C Before ITR Deadline

What Section 80C Offers to Taxpayers

Section 80C allows individuals and Hindu Undivided Families (HUFs) to claim deductions of up to Rs. 1.5 lakh in a financial year. By investing in eligible instruments, taxpayers can reduce their taxable income while also building long-term savings.

Extra Rs. 50,000 Benefit Beyond 80C Limit

Apart from the Rs. 1.5 lakh limit under Section 80C, taxpayers can claim an additional Rs. 50,000 deduction under Section 80CCD(1B) for pension contributions. Combined with other provisions like Section 80TTB, total tax-saving potential can go up to around Rs. 2 lakh.

Popular Investment Options to Claim Deductions

Eligible investments include market-linked options like Equity Linked Savings Scheme and ULIPs, along with safer instruments such as Public Provident Fund, EPF, tax-saving fixed deposits, and National Savings Certificate. These options not only help save tax but also generate returns over time.

Tax-Saving Options for Family and Personal Goals

Section 80C also covers investments linked to life goals. Parents can claim deductions for tuition fees of up to two children, while schemes like Sukanya Samriddhi Yojana support long-term savings for daughters. Additionally, LIC premiums, home loan principal repayment, and stamp duty charges are also eligible.

Don’t Miss the 31 March Deadline

To claim deductions for a financial year, all eligible investments must be completed before 31 March. Missing this deadline means losing out on tax benefits for that year, even if investments are made later. Planning ahead ensures you fully utilise the Rs. 1.5 lakh limit.

How to Claim Deductions in Your ITR

Taxpayers need to maintain proper proof such as bank statements, premium receipts, and investment certificates. These details must be reported under “Deductions under Chapter VI-A” while filing returns. You can also declare these investments to your employer in advance to adjust TDS during the year.

Old vs New Tax Regime — What You Must Know

The benefits of Section 80C are available only under the old tax regime. Taxpayers opting for the new regime cannot claim these deductions, even if they invest in eligible schemes. Choosing the right regime is crucial to maximise overall tax savings.

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