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Income Tax

Section 80C Limit for AY 2026-27: What Counts

Reviewed by CA Nikhil Gupta · Last reviewed 2 August 2026

CA Nikhil Gupta·Aug 2026·4 min readIncome Tax

For AY 2026–27, the combined ceiling under sections 80C, 80CCC and 80CCD(1) is ₹1,50,000 under the old regime.

The cap is a deduction from taxable income, not a guaranteed ₹1,50,000 tax saving.

Legal or Computational Framework

AY 2026–27 relates to FY 2025–26 and uses the Income-tax Act, 1961 section references. The official portal lists life-insurance premium, provident-fund contributions, specified equity-linked investments, tuition fees, National Savings Certificates and eligible housing-loan principal among common section 80C items. Employer NPS under section 80CCD(2) and the additional own-NPS deduction under section 80CCD(1B) are analysed separately.

Worked Example

The excess ₹22,000 is not carried forward. If the taxpayer has also contributed ₹50,000 to eligible NPS, the ₹1.5 lakh combined cap should first allocate section 80CCD(1) appropriately, while a separate qualifying section 80CCD(1B) claim may be available up to ₹50,000.

What Generic Pages Miss

  • Treating the cap as tax saved instead of income deducted.
  • Ignoring EPF already counted.
  • Claiming school development fee instead of tuition fee.
  • Assuming all life-insurance premium is fully eligible.
  • Buying a product only for deduction without considering lock-in, cost and suitability.

Practical Documentation Checklist

  • EPF statement
  • Investment certificates
  • Life-insurance policy and premium receipt
  • Tuition fee receipt identifying eligible children
  • Home-loan principal certificate
  • NSC/PPF/ELSS records
  • Old-regime selection
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Finin2min Summary

For AY 2026–27, the combined ceiling under sections 80C, 80CCC and 80CCD(1) is ₹1,50,000 under the old regime. The cap is a deduction from taxable income, not a guaranteed ₹1,50,000 tax saving.

Frequently Asked Questions

Is the 80C limit ₹2 lakh after NPS? ▼
The combined 80C/80CCC/80CCD(1) cap is ₹1.5 lakh; a separate 80CCD(1B) deduction up to ₹50,000 may apply.
Can both spouses claim the same payment? ▼
No. Each should claim only eligible amounts actually paid or legally borne and not claimed by the other.
Is home-loan interest part of 80C? ▼
No. Eligible principal can fall under 80C; interest is examined under section 24(b), 80EE or 80EEA.
Can 80C be claimed in the new regime? ▼
It is ordinarily unavailable under the default new regime.
Does unused 80C limit carry forward? ▼
No.
Can an HUF claim 80C? ▼
An HUF can claim eligible items permitted to it, subject to the combined statutory cap.

Official References

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CA Nikhil Gupta · Aug 2026·Income Tax
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⚠ Disclaimer: This article is for education and general awareness. It is not tax, legal, accounting, audit, representation, investment, insurance, property or litigation advice. Tax treatment depends on the applicable year, governing Act, taxpayer status, facts, documents, regime, forms, notifications and portal process. Property and personal-law outcomes can also vary by state or family law. Obtain advice from appropriately qualified professionals before filing or acting.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Primary category
Income Tax
Official starting point
www.incometax.gov.in

Page source links

Related guidance: ITR Form Selector — AY 2026–27