Deduction up to ₹1,50,000 — investments + payments

Resident individuals and HUFs (in the OLD tax regime only) can claim a deduction of up to ₹1,50,000 for specified investments and payments — LIC, PPF, EPF, ELSS, Sukanya Samriddhi, NSC, tuition fees, home-loan principal, and others.

Key points

• §80C is available to resident individuals and HUFs under the OLD tax regime — NOT available under the §115BAC NEW regime.
• The overall ceiling is ₹1,50,000, combined with §80CCC and §80CCD(1) via §80CCE (the total cap across all three is ₹1.5 L).
• Common qualifying items include LIC and health-insurance premiums PAID (not received), EPF and VPF employee contributions, PPF, ELSS mutual funds, ULIPs, NSC, 5-year bank tax-saver FDs, Senior Citizen Savings Scheme, Sukanya Samriddhi, principal repayment of a home loan (interest goes separately under §24(b)), tuition fees for up to two children, and stamp duty plus registration costs on house purchase.
• NPS Tier 1 employee contribution sits under §80CCD(1) within this same ₹1.5 L cap;
• the ADDITIONAL ₹50,000 deduction for NPS lives separately under §80CCD(1B).

Reference: §80C read with §80CCE, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §123