Section 80C is one of the most well-known parts of the Income Tax Act, allowing you to deduct up to ₹1.5 lakh from your taxable income each year, provided you invest or spend that money in specific eligible ways — including PPF, ELSS mutual funds, life insurance premiums, 5-year tax-saving FDs, NSC, SSY, and repayment of home loan principal, among others.
This deduction is only available if you opt for the Old Tax Regime, since the New Tax Regime does away with most such deductions. Because the ₹1.5 lakh limit is combined across all eligible instruments, not per-instrument, many people plan their 80C investments together at the start of the financial year rather than scrambling in March. Choosing which 80C instrument to use depends on your goals — ELSS for growth, PPF for safety, and so on.