Can I claim Section 80C deductions for investments made in my spouse’s or children’s name?

Yes, you can claim deductions for certain investments made for your spouse and children under Section 80C. For life insurance premiums, you can claim deductions for policies taken for yourself, your spouse, and your children. Similarly, tuition fees paid for your children’s education (up to two children) are eligible for deduction under this section.

What happens if my total Section 80C investments exceed ₹1,50,000 in a financial year?

If your total investments under Section 80C exceed ₹1,50,000, you can only claim a maximum deduction of ₹1,50,000 for that financial year. The excess amount will not provide any additional tax benefit under this section.

Can I claim both EPF contribution and PPF investment in the same financial year?

Yes, you can claim deductions for both EPF contributions and PPF investments in the same financial year under Section 80C. However, the combined total of all your Section 80C deductions (including EPF, PPF, and other eligible investments) cannot exceed ₹1,50,

4. Is the interest earned on PPF and NSC also eligible for tax deduction?

The interest earned on PPF is completely tax-free and doesn’t require any deduction claim. For NSC, the interest that gets reinvested annually is eligible for deduction under Section 80C (except for the interest earned in the final year). This reinvested interest is treated as fresh investment and can be claimed as a deduction subject to the overall ₹1,50,000 limit.

Can senior citizens claim deduction for SCSS investments under Section 80C?

Yes, senior citizens (individuals above 60 years) can claim deductions for their investments in the Senior Citizens Savings Scheme (SCSS) under Section 80C. The investment amount is eligible for deduction up to the maximum limit of ₹1,50,000 per financial year.

What is the difference between Section 80CCD(1) and 80CCD(1B) for NPS contributions?

Section 80CCD(1) allows deduction for NPS contributions within the overall ₹1,50,000 limit of Section 80CCE (combined with 80C and 80CCC). Section 80CCD(1B) provides an additional deduction of up to ₹50,000 specifically for NPS contributions, which is over and above the ₹1,50,000 limit.

Can I claim deduction for home loan principal repayment if the property is not in my name?

No, you can only claim deduction under Section 80C for home loan principal repayment if you are a co-owner of the property or the property is registered in your name. The deduction is available only to the person who has legal ownership of the property and is liable to pay the loan.

Are there any restrictions on claiming tuition fee deductions under Section 80C?

Yes, there are specific restrictions for tuition fee deductions under Section 80C. You can only claim deductions for tuition fees paid for full-time education of up to two children at educational institutions within India. Development fees, donation fees, transport fees, and hostel fees are not eligible for deduction.

What documents should I maintain for claiming Section 80C deductions during tax filing?

You should maintain comprehensive documentation for all your Section 80C claims including investment certificates, premium payment receipts, bank statements, and acknowledgment receipts. For PPF, keep the passbook or annual statement; for ELSS, maintain the mutual fund statement; for life insurance, keep premium receipts; and for home loans, maintain the annual certificate from the lender.

Can I modify my Section 80C investments during the financial year to optimize tax benefits?

Yes, you can make additional investments during the financial year to optimize your Section 80C benefits, but you cannot withdraw or modify certain existing investments due to lock-in periods. For example, ELSS has a 3-year lock-in, PPF has a 15-year maturity, and tax-saver FDs have a 5-year lock-in.

Taxation

Complete Guide to Income Tax Deductions: Section 80C and Beyond (2025-26)

Vishakha Gaur

June 03, 2025

11 min read

Vishakha Gaur

Vishakha Gaur is a content writer with 2 years of hands-on experience crafting clear, engaging, and research-driven content. My work primarily focuses on legal and tax-related topics, where I simplify complex subjects for a wider audience. With a keen eye for detail and a problem-solving mindset, I aim to create content that not only informs but also adds real value to readers.

Complete Guide to Income Tax Deductions: Section 80C and Beyond (2025-26)

Vishakha Gaur

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Vishakha Gaur

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