New Delhi, May 4 -- Section 80C of the Income-Tax Act i.e. Section 123 under the updated ITA 2025 provides taxpayers with deduction benefit up to Rs.1.5 lakh for investment in certain government saving schemes during a given financial or assessment year. Along with rebate, exemptions and deductions, it allows you to lower your liability.

Only available for taxpayers filing their returns as per the old tax regime, it offers the dual advantage of interest earnings and tax savings.

Further, you can also claim additional Rs.50,000 deduction under Section 80CCD(1B) on contribution to specified pension funds, and Section 80TTB for tax-saver fixed deposits (FDs). This effectively stretches your total deductions under Section 80C to Rs.2 lakh i...