Section 80C tax saving: History, benefits, and more

Even if you do not know much about the Income Tax Act, 1961, you would have definitely heard about its Section 80C at some point. The reason for this is that section 80C is the go-to income tax saving section for individuals and HUFs (Hindu Undivided Family) in the country. Tax benefits under section 80C allow you to deduct a maximum of Rs. 1.5 lakh from your taxable income by making certain income tax saving investments. These include the National Pension System (NPS), Equity-Linked Savings Scheme (ELSS), Public Provident Fund (PPF), five-year tax-saving fixed deposits, and more. Tax benefits under section 80C go beyond income tax saving investments. For instance, you can claim the section 80C tax saving deduction for the repayment of home loan principal as well as stamp duty and registration charges.