Introduction
Section 80C of the Income Tax Act is one of the most widely used provisions for tax saving in India. It allows individuals to claim deductions up to ₹1.5 lakh per financial year on eligible investments and expenses. But many taxpayers either miss out on deductions or make mistakes while filing their Income Tax Return (ITR). Here’s a step‑by‑step guide to claim Section 80C deductions correctly.
1. Eligibility Under Section 80C
You can claim deductions for investments and expenses such as:
- ELSS (Equity Linked Savings Scheme) mutual funds
- PPF (Public Provident Fund) contributions
- EPF (Employee Provident Fund) contributions
- NSC (National Savings Certificate)
- Tax-saving Fixed Deposits (FDs)
- Life Insurance Premiums
- Tuition fees for children
- Principal repayment of home loan
👉 Maximum deduction allowed: ₹1.5 lakh per year.
2. Documents Required
Before filing, keep these ready:
- Investment proofs (receipts, passbooks, fund statements)
- Insurance premium receipts
- Form 16 (for salaried employees)
- Bank FD certificates
- Home loan repayment statement
3. Step-by-Step Guide to Claim 80C in ITR
1. Log in to the Income Tax e-Filing Portal
- Visit incometax.gov.in.
- Use your PAN and password to log in.
2. Select the Correct ITR Form
- Salaried individuals usually file ITR-1 or ITR-2.
- Business owners may need ITR-3 or ITR-4.
3. Navigate to Deductions Section
- Go to Deductions under Chapter VI-A.
- Select Section 80C.
4. Enter Investment Details
- Fill in the amount invested in ELSS, PPF, NSC, FDs, insurance premiums, etc.
- Ensure the total does not exceed ₹1.5 lakh.
5. Cross-Check With Form 16
- For salaried employees, verify that employer-declared deductions match your actual investments.
6. Submit and E-Verify
- After filling all details, submit the return.
- Complete e-verification using Aadhaar OTP, net banking, or EVC.
4. Common Mistakes to Avoid
- Claiming more than ₹1.5 lakh (system will reject excess).
- Forgetting to include insurance premiums or tuition fees.
- Not keeping proof of investments (may be required for scrutiny).
- Entering wrong figures compared to Form 16.
5. Conclusion
Claiming Section 80C deductions properly ensures maximum tax savings and smooth ITR filing. Always keep documents ready, file early, and double-check entries before submission. With the right planning, you can save up to ₹1.5 lakh every year while building wealth for the future.