Maximum deduction under 80C for AY 2025-26

Income Tax
1

I am planning my investments for the accounting year 2025–2026. What is the maximum deduction I can claim under Section 80C in India?

2

For the accounting year 2025–2026 (AY 2026–27), the maximum deduction you can claim under Section 80C of the Income Tax Act is ₹1.5 lakh. This limit has been the same for the past few years.

Investments and Payments Eligible under Section 80C

You can claim this deduction by investing or spending in options like:

• Life Insurance Premiums (for self, spouse, or children)

• Employee Provident Fund (EPF) / Public Provident Fund (PPF)

• 5-year Tax-saving Fixed Deposits with banks or post office

• National Savings Certificate (NSC)

• Equity Linked Savings Scheme (ELSS) Mutual Funds

• Principal Repayment of Home Loan

• Children’s Tuition Fees (up to 2 children)

• Sukanya Samriddhi Yojana deposits.

Points to Remember:

• The overall cap is ₹1.5 lakh, even if you invest in multiple instruments.

• If you opt for the new tax regime, you cannot claim Section 80C deduction.

• If you are under the old regime, make sure to keep proofs (receipts, certificates) for investments to support your claim.

For official details, you can check the Income Tax Department portal here: