What is Section 80C Deduction Limit?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

What is Section 80C Deduction Limit?
  • 31st Jan 2022 |
  • 915

As the year comes to an end, earning individuals who fall under the categories of the various tax slabs begin with expenditures and investments and start tax filing that will help them reduce their taxable income. One of them is section 80C of the Income Tax Act that helps people avail deductions by making various kinds of tax-saving investments. The end of the financial year is marked by 31st March every year and this is the time when people should file their tax returns to avail all possible deductions. Income Tax 80C, together with section 80CCC & 80CCD, offers a mixture of deductions that are quite beneficial. If you need to make use of your earnings at some stage in the Previous Year (PY), you may declare the amount as a deduction out of your general taxable earnings for the PY. Therefore, as an individual taxpayer, you have a lot of options to avail deductions and make significant savings

For instance, let us assume that you are an individual ‘X’ that has earned gross general earnings of ₹10,00,000 as taxable earnings in P.Y. 2015-16. In this case, the assessment Year might be 2016-17. while you will have to estimate and pay the tax on these earnings. For the purpose of investment, if you invest ₹100,000 of these earnings in any or a couple of investment schemes, mentioned under section 80C, then your general taxable earnings might be decreased to ₹900,000 for the P.Y. However, if you are thinking of investing beyond a certain amount of money, chances are that you might not be aware of the limit on Section 80C. Yes, you read that right! While investing, you can seek deductions on your taxable income under Section 80C of the Income Tax Act up to a certain extent only.

Ways to avail tax deductions below Section 80C

Before diving into the tax limit on savings, it is better to have an idea about the ways in which you can avail tax deductions. Deductions below segment 80C may be divided into the following parts:

Investment Activities of an individual

You deposit your cash in a fund or scheme for a while after which you get it back with added interest and benefits.

Spending Activities of an individual

You invest your money in investments mentioned below Section 80C:

A good deal claimed u/s 80C

Section 80 C of the Income Tax Act states that there are limitations on the tax return amount for both spending and investment activities. An individual can enjoy deductions worth ₹1,50,000 under Section 80C. However, the applicability of Income Tax 80C does not end here. There is a choice to expand this deduction amount by an additional ₹50,000 as mentioned under section 80CCD as that is applicable over and above section 80C.

The benefits under Section 80C extend to all the tax-paying individuals and help them expand their investment portfolios. Additionally, there are several options you can have a look at to save tax under the existing regime and that can benefit your investment goals in the best possible manner!

Kotak Guaranteed Savings Plan


  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • @ Guaranteed Loyalty Additions
  • Accrued Guaranteed@ Additions

Ref. No. KLI/22-23/E-BB/490


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What is the Difference between Form 16 and Form 16A?

Income Tax Filing For NRI in India

आयकर स्लैब 2021-2022

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is Salary Protection Insurance and Why You Need It

E-Filing of Income Tax Returns in India

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

What is the Difference Direct Tax and Indirect Tax

The Difference Between Gross Income & Total Income in Calculating Income Tax

How to save tax for salaried person?

Presumptive Taxation for Business and Profession

What is ITR & How to File Income Tax Return

How to file Form 16 online?

What is Section 10D of the Income Tax Act?

9 Income Tax Myths That Could Cost You Money while Filing returns

Why January Is an Important Month for Saving Tax?

When Should TDS be Deducted and Who is Liable to Deduct it?

How to Check Income Tax Refund Status Online in India

Have You Considered Term Insurance a Part of Your Tax Planning?

ITR-6: Guide to filing ITR-6 Form online

Tax Deductions You MUST Know

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

What is the TDS Rate on Salary?

Penalty For Late Filing TDS Return

Saving Income tax in 2017 - 18

TDS Due Dates of FY 2020-21 For Return Filing

What is TDS Exemption Limit?

Income Tax Filing Using Multiple Form 16

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

What are Direct Taxes? How to Avoid being Overtaxed?

Section 80G of Income Tax Act

What are the Different Types of Taxes in India?

How to View 26AS and Download Form 26AS Online?

A Complete Guide for Filing ITR 3 Form

How to File Income Tax Return without Form 16

How to File Income Tax Return - Everything You Need To Know

7 Important Things to Remember While Investing in a Savings Investment Plan

What Investment Options Come with Tax Incentives?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

Tax Season Is Coming- Know How to Save Tax

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

How to File Income Tax Return for First Time Tax Payers

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

How to Check Income Tax Refund Status Online in India

All about Online Income Tax Calculator

Tax Exemption and Scope of Coverage

Save Income Tax by 31st March: Here Is a Checklist

धारा 80सी आयकर अधिनियम, 1961

Tax Saving Options for Salaried Employees

Form 16, Form 16A, and Form 16B?

Tax Saving Guide for 2019-20

How to File Form 16 for Salaried Employees?

Role of Life Insurance in Your Financial Portfolio

Tax Planning and Tax Benefits of Life Insurance

Types of Income Tax Return (ITR) Forms

Are Financial Planning and Tax Planning the Same Thing?

9 Point Guide on how to File Income Tax Return Online

Section 44AD of Income Tax Act for AY 2020-21

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Income Tax Deduction Under Section 80CCC In India

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

धारा 80डी आयकर अधिनियम, 1961

Why is Form 16 Important?

What is Form 16B?

What is Form 26AS - All You Need To Know

Understanding Tax Exemptions in ULIP (Old and New)

Types of Riders in Insurance Policy

Tax-Free Income in India

Income Tax Benefits for Doctors

How to Check Income Tax Returns Status Onine?

Interest Imposed Under Section 234A, 234B and 234C

Can You Get Term Insurance Without Income Proof?

Tax Saving Tips: Best Ways to Save Income Tax for 2021

How To Save Tax Better with 80C

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

Difference between Section 80C, 80CCC, 80CCD & 80D

Guaranteed Return Plans-Why is it a must for you?

All about TDS on Salary under Section 192 – Kotak Life

Income Tax Exemption for Disabled

Top 8 Tax-Saving Methods in India- Budget Planning

Income Tax Deductions for Disabled Person Under Section 80U

How to View 26AS and Download Form 26AS Online

How To Save Tax Using Life Insurance?

ITR 2 Form – Complete Guide

What is Section 80C - Explained in Detail

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

How to Pay Advance Tax Online in India

What is the Percentage of Tax Deducted at Source (TDS)?

Sub-sections Under Section 80C of the Income Tax Act, 1961

How to Claim TDS Refund for Excess TDS Deduction

How to File Form 10E for Tax Relief on Salary Arrears?

What is TDS Slab?

Income Tax Exemption for Physically Handicapped Dependent

Home Investment Plan to Buy Dream Home

How to Save Tax on Salary Arrears?

All You Need to Know About Section 80C

Tax Structure in India

A Comprehensive Guide to Understand the ITR 7 Form

Pradhan Mantri Suraksha Bima Yojana

Tips to plan your savings in 2019

What Is Advance Tax and How Is It Calculated?

Insurance and Endowment: Everything You Need to Know!

Why Tax Planning Should Be an All-year Round Activity

Tax Saving Options other than Section 80C

How can I get Form 16B from traces?

Section 80E: Tax Exemption on Interest on Education Loan

How do I Calculate My Term Insurance Premium

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

How to e file ITR on Income Tax Government Portal

Section 16 of the Income Tax Act (ITA), 1961

Tax Saving for Self Employed in India

Tax Benefits of ULIP Plans Available for NRIs

Income Tax Deductions Under Section 80C

Financial Planning and Best investment options for Housewives

What is TDS Refund Process?

All about TDS Payment Online & Due Dates

What To Do If Your TDS Is Not Deposited With The Government?

How to Save Income Tax with Insurance

How to File ITR Online

How to File TDS Return?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

What is Section 80CCC of the Income Tax Act 1961

Things to Do After Filing Income Tax Returns

How to Get Form 16?

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Problems People Face with Tax Returns after a Job Change

5 Popular Tax-Saving Schemes in India

Section 80C Deductions as per Income Tax Act, 1961

Budget 2019: Impact on the Common Man in India

ITR 1: Sahaj Form

Tax-Savings Investments and Options in India

Tax Benefit of Investing in Term Plan

What is ITR 5 Form and How to File ITR 5?

How to e-Verify your Income Tax Return

Do Beneficiaries Pay Taxes on Life Insurance?

Impact of GST on Life Insurance in India

What is Tax Deduction at Source (TDS)?

List of Important Income Tax FAQs

Guide for Tax Calculation on your Salary

5 Unusual Investments You Didn't Know for Saving Taxes in India

Financial Benefits and Government Schemes Every Woman in India Should Know

What is Form 16A?

How Much Money This Budget 2019 Can Help You Save

How to Download Form 16?

Investing Lump Sum Amount

Union Budget Highlights – 1st February 2022

Tax Benefits for Startups in India

What is Section 80C Deduction?