📌 Section 80C – Investments & Expenses
- Maximum Deduction: Up to ₹1.5 lakh per financial year.
- Who can claim: Individuals & Hindu Undivided Families (HUFs).
- Eligible Investments/Payments:
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- Life Insurance Premiums
- Equity Linked Savings Scheme (ELSS – tax-saving mutual funds)
- National Savings Certificate (NSC)
- Sukanya Samriddhi Yojana (SSY)
- 5-year Tax-saving Fixed Deposits
- Principal repayment of Home Loan
- Tuition fees for children (up to 2 kids)
👉 Example: If you invest ₹1.5 lakh in PPF, your taxable income reduces by ₹1.5 lakh.
📌 Section 80D – Health Insurance Premiums
- Maximum Deduction: Depends on age and who you insure.
- Eligible Payments: Premiums paid for health insurance (Mediclaim) and preventive health check-ups.
| Who is Covered | Deduction Limit |
|---|---|
| Self + Spouse + Children (all < 60 years) | Up to ₹25,000 |
| Parents (< 60 years) | Additional ₹25,000 |
| Parents (≥ 60 years, senior citizens) | Additional ₹50,000 |
| Self/Spouse (≥ 60 years) | Up to ₹50,000 |
| Preventive Health Check-up | Included within above limits (max ₹5,000) |
👉 Example: If you are under 60 and pay ₹20,000 for your family’s health insurance + ₹40,000 for senior citizen parents, you can claim ₹60,000 total deduction under 80D.
🔑 Key Difference
- 80C = Investments for wealth-building + tax saving.
- 80D = Health protection (insurance premiums) + tax saving.
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