Section 80C of the Income Tax Act remains a popular go-to for millions of Indian taxpayers. Offering deductions of up to ₹1.5 lakh, it covers a wide range of investment from PPF and ELSS to life insurance premiums and tuition fees. But for the Assessment Year 2026-27 (FY 2025-26), the government has made some important updates to how these deductions are claimed.
In a move aimed at increasing transparency and reducing fraudulent claims, taxpayers will now need to provide additional detail including policy numbers, account IDs, and receipt reference while filing their Income Tax Returns (ITRs) under the old tax regime.
Key Takeaways
| Aspect | FY 2025-26 Requirement |
| Max Deduction Limit | ₹1.5 lakh under old regime |
| Disclosure of Investment | Mandatory (policy/account ID, etc.) |
| Applicable Regime | Only under old regime |
Eligibility
- Individuals - Indian residents and Non Resident Indians are eligible
- HUFs
In eligible for:
- Companies
- Partnership Firms
- LLPs
Deduction Limit
The maximum deduction under Section 80C remains capped at ₹1.5 lakh. Section 80C is available only under the old tax regime. Popular investments eligible for 80C include:
- Public Provident Fund (PPF)
- Employees' Provident Fund (EPF)
- Equity-Linked Saving Schemes (ELSS)
- National Savings Certificate (NSC)
- 5-Year Fixed Deposits
- Life Insurance Premiums
- Children’s Tuition Fees
- New Disclosure Requirements in ITR Forms
Investment Details Now Mandatory
Starting FY 2026-27, taxpayers filing ITR-1 or ITR-4 must now provide detailed information for each Section 80C investment, including:
- Name of the scheme/instrument (e.g., LIC, ELSS, PPF)
- Policy number or account number
- Amount invested
- Name of payee or institution
- Document/reference number (from receipt, policy, or bank)
- This information is to be filled in the "Schedule VI-A" section of the ITR form.
Purpose of This Change
- To prevent fraudulent claims of deductions without valid proof.
- To cross-verify information with PAN-linked data from insurers, mutual funds, and banks.
- To promote paperless compliance through pre-filled data in future.
How to File 80C Deduction Correctly for FY 2025-26?
Step-by-Step Guide:
Choose the Tax Regime:
- Old regime → allows 80C deduction
- New regime → does not allow 80C benefits
Collect Documents:
- Receipts for LIC premiums, ELSS statements, PPF passbooks, etc.
- Ensure each has a policy/account number and date.
Open ITR Utility (Excel or Online):
- Navigate to Schedule VI-A.
- Fill in each investment with proper ID, name, and amount.
Double-Check Entries:
- Mismatched or blank details could lead to rejection or notice.
- Upload & Verify with Aadhaar OTP.
Minimum Holding Period for Various Investments u/s 80C
| Investment options | Minimum Holding Period |
| Fixed Deposit | 5 years |
| PPF | 15 years |
| NSC | 5 years |
| ELSS | 3 years |
| NPS | Till reaches 60 years of age |
| SCSS | 5 years |
| ULIP | 5 years |
| Sukanya Samriddhi Yojana | Till girl child reaches 21 years |
Income Tax Deduction Limits of Sub-Sections 80C
| Sections and Eligible investments | Maximum Limit (INR) |
| 80C: Investment in ELSS, PPF, Life Insurance Premiums, Tuition Fees, Home Loan Principal, SSY, NSC, SCSS, etc. | 1,50,000 |
| 80CCC: Payment towards annuity plan of LIC or other insurer towards Pension Scheme | 1,50,000 |
| 80CCD(1): Contributions made towards Government Schemes like Atal Pension Yojana or other notified pension schemes. | Employed: 10% of basic salary + DA Self-employed: 20% of gross total income. |
| 80CCE: Combined limit for Sections 80C, 80CCC, and 80CCD(1). | 1,50,000 |
| 80CCD(1B): Additional investment in NPS beyond the Rs 1,50,000 limit under Section 80CCE. | 50,000 |
| 80CCD(2): Employer’s contribution to NPS (outside the Rs 1,50,000 limit under Section 80CCE). | Central government employer: 14% of basic salary + DA Others: 10% of basic salary + DA |
FAQs
Can assessee claim 80C in the new tax regime?
No. The new tax regime does not allow 80C deduction. Choose the old regime to avail this benefit.
Are the changes applicable to all taxpayers?
Yes, anyone claiming 80C deductions under the old tax regime must comply with the disclosure requirement.
What if assessee does not have a policy number for ELSS or LIC?
Assessee must collect it from the investment provider.
Without this, the claim could be rejected.
What is the maximum deduction can be claimed under Section 80C and its sub section?
The maximum deduction can be claimed upto INR 2 lakhs under Section 80C+80CCC+80CCD(1)+Section 80CCD(1B).
Can I claim both 80C and 80CCC?
Yes, but the deduction under 80CCC is part of the overall limit u/s 80C. The combined total deduction for Sections 80C, 80CCC, and 80CCD(1) is Rs 1.5 lakh.
Can I claim 80C without proof?
Yes, you can claim 80C without any paperwork. But you can keep documents safe as the tax department may request them if a notice issued.
Is 80C available under new regime?
It is only available under old regime.
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