New Delhi, May 2 -- Section 80C of the Income-Tax Act (ITA) provisions for certain investments by taxpayers to be eligible for up to Rs.1.5 lakh deduction when taxable income is calculated for a given financial or assessment year. Combining it with other exemptions, deductions and rebate allows you to lower tax liability each year.

In the new ITA 2025 implemented from April this year, the provision has been outlined under Section 123.

A key feature of investment tools that are allowed for Section 80C deductions is that these offer dual advantage of tax saving while giving an interest income at the same time. Notably however, Section 80C deduction is only available under the old tax regime.

Further, an additional Rs.50,000 deduction can...