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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
The key focus is on the long-standing demand to raise the deduction limit under Section 80C of the Income Tax Act. It’s been set at ₹1.5 lakh since 2014.
Taxpayers were expecting an increase in the previous budget, and that expectation remains for Budget 2025 as well.
An increase in the limit may encourage more savings and financial planning.
Notably, one can avail themselves of the deduction under section 80C if they opt for the old tax regime. However, an individual who chooses the new tax regime is not eligible to avail of the deduction.
What is Section 80C?
Section 80C of the Income Tax Act of India is a clause that provides an exemption on certain expenditures and investments from income tax. This section allows for an annual deduction of up to ₹1.5 lakh from the total taxable income of a person.
Individual taxpayers and Hindu Undivided Families are the only ones who can take advantage of 80C tax exemptions for investment. However, corporate entities, partnership firms and other businesses are not eligible for Section 80C tax exemptions.
Investments eligible for claims under Section 80C are:
- Equity Linked Saving Schemes (ELSS) in mutual funds
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Employee Provident Fund (EPF) (voluntary contributions)
- Unit Linked Insurance Plans (ULIPs) with a minimum premium allocation of 60%
- Sukanya Samriddhi Yojana Account
- Senior Citizen Savings Scheme (SCSS)
- Five-year tax-saving fixed deposits with banks
Expenses eligible for claims under Section 80C are:
- Tuition fees for up to two children
- Repayment of the principal amount on home loans
- Premiums paid for life insurance policies
- Contributions to pension schemes such as the National Pension System (NPS)
Eligibility
Individuals and HUFs both qualify for Section 80C deductions. This clause applies to both Indian and non resident Indians. While corporate bodies, including partnerships and companies, are not eligible for the deduction.
How to claim deductions under Section 80C?
Taxpayers must incur expenses or make investments throughout the fiscal year (April 1–March 31) to be eligible for these deductions. These sums are reported in the appropriate sections while filing the ITR, with accompanying documentation—such as payment receipts and investment proofs—for efficient processing.
The deductions claimed under Section 80C lessen the taxable income after the ITR is successfully filed and processed, hence lowering the amount of tax payable.
You can claim these deductions to reduce your total tax outgo:
Employees Provident Fund (EPF): Under the Employees Provident Fund (EPF) scheme, salaried employees deposit 12% of their salary in the EPF account, which is matched by the employer too. According to the new amendments in the Finance Act, the interest amount earned on this is no longer completely tax-free.
ELSS: ELSS or equity-linked savings schemes, offer a lock-in period of three years and invest in an equity that is eligible for a tax deduction. This savings scheme has no upper capping and the minimum investable amount varies across fund houses. It offers the benefits of tax deductions as well as wealth creation.
Life Insurance Premiums: Under Section 80C, premiums paid on life insurance policies are eligible to receive tax benefits. These exemptions apply to insurance policies owned by self, spouse, dependent children, etc. These exemptions also apply to members of Hindu undivided families. Under this scheme, an annual premium of up to 10% (of the entire value assured under the insurance policy) is currently tax-exempt.
Unit Linked Insurance Plans (ULIPs): This scheme provides more returns in the long term as compared to traditional insurance policies. Under section 80C, people can avail themselves of tax exemptions up to ₹1.5 lakh on the invested amount. This scheme offers the dual benefit of a life cover to financially protect in case of an unfortunate event and investment to fulfil your long-term goals.
Public Provident Fund (PPF): If you have invested in specific investment options, like the public provident funds (PPF), you may be eligible for a tax deduction of up to ₹1.5 lakh under Section 80C in a given fiscal year. Additionally, the maturity amount is tax-free and the interest paid on it is also non-taxable. The PPF account has a 15-year lock-in term.
