Difference between Section 80C, 80D and 80G at a glance
The three sections are often confused because all of them reduce taxable income, but they cover completely different payments and each carries its own limit. All three are claimed under the old tax regime; the figures below are the widely applicable limits and should be confirmed for the financial year you are filing for.
| Section | What it is for | Indicative limit | Typical examples |
|---|---|---|---|
| 80C | Savings and investment-type payments | Rs 1.5 lakh combined | Life insurance premium, EPF, PPF, ELSS, home-loan principal, tuition fees |
| 80D | Health protection | Rs 25,000, or Rs 50,000 for senior citizens, separately for self and parents | Health insurance premium, preventive health check-up up to Rs 5,000 |
| 80G | Donations to notified funds and approved institutions | 50% or 100% of the donation, sometimes capped at 10% of adjusted gross total income | PM National Relief Fund, approved charitable trusts |
80C vs 80D — the short answer
80C rewards money you set aside or repay: premiums on life cover, provident fund, ELSS, home-loan principal. 80D rewards money you spend on health protection for your family and parents. The limits are separate, so a family paying Rs 1.5 lakh of 80C investments and Rs 40,000 of health premiums can claim both in the same year.
Where 80G is different
80C and 80D have fixed rupee ceilings. 80G instead depends on the institution you donated to and can be restricted to a share of your adjusted gross total income. Cash donations above Rs 2,000 are not eligible, so pay digitally and keep the stamped receipt showing the institution's 80G registration number.
What qualifies under Section 80C (limit Rs 1.5 lakh)
The Rs 1.5 lakh ceiling is shared across everything above. Many salaried people already fill a large part of it through EPF and home-loan principal before buying anything new — check what is already counted before committing fresh money.
- Life insurance premiums for self, spouse and children
- Employee Provident Fund and Public Provident Fund contributions
- ELSS mutual funds, NSC and 5-year tax-saving fixed deposits
- Principal repayment on a home loan and eligible tuition fees
- Sukanya Samriddhi Yojana for a daughter
Section 80D — the health insurance deduction
80D applies to premiums paid for a health insurance policy covering you, your spouse, dependent children and your parents. Premiums must be paid by any mode other than cash, except for preventive health check-ups.
- Up to Rs 25,000 for self, spouse and dependent children
- An additional Rs 25,000 for parents, or Rs 50,000 where they are senior citizens
- Up to Rs 5,000 for preventive health check-ups, counted within the above limits
- Medical expenditure for senior citizens without insurance can qualify, subject to conditions
Other sections worth knowing
| Section | What it covers | Indicative limit |
|---|---|---|
| 80CCD(1B) | Additional NPS contribution | Rs 50,000 over and above 80C |
| 80CCD(2) | Employer NPS contribution | Available in both regimes, salary-linked |
| 24(b) | Home-loan interest, self-occupied house | Rs 2 lakh |
| 10(10D) | Life insurance maturity and death proceeds | Exempt, conditions apply |
Old regime vs new regime — which one saves more
The new regime has lower slab rates but removes most deductions, including 80C, 80D and 80G. If your 80C, 80D, home-loan interest and HRA together add up to a large figure, the old regime often wins. If you claim little, the new regime is usually simpler and cheaper. Run both sets of numbers before you decide, and remember the choice affects only tax, not whether the cover itself is worth holding.
Mistakes to avoid
- Buying a long-term policy in March only to save tax, then surrendering it after a year or two
- Ignoring 80D — health premiums are often the easiest unused deduction in a family's return
- Donating in cash above Rs 2,000 and losing the 80G claim entirely
- Forgetting that a lapsed policy also reverses the deduction claimed earlier
Please note
Tax benefits are as per prevailing tax laws and are subject to change, including by the annual Finance Act. This page is general information for Indian taxpayers, not tax advice — please confirm your position for the relevant financial year with a qualified tax professional or on the Income Tax Department portal.
Plan the cover first, then the deduction
The sections above only matter once the underlying plan is right. These pages and calculators help you decide how much cover and savings you actually need:
- Financial planning — build the plan your 80C investments should fit into
- Health insurance — the cover behind your Section 80D deduction
- Term insurance — protection premiums that also count under 80C
- Retirement planning — where NPS and 80CCD(1B) fit
- Life cover calculator — check how much life cover your family needs
- All planning calculators — retirement, education, health and premium estimates
Frequently asked questions
What is the difference between Section 80C and Section 80D?
Section 80C covers savings and investment-type payments such as life insurance premiums, EPF, PPF, ELSS, home-loan principal and tuition fees, with a combined limit of Rs 1.5 lakh. Section 80D is only for health insurance premiums and preventive health check-ups, with its own separate limit. They are independent, so you can claim both in the same year under the old tax regime.
How much can I save under Section 80C?
Up to Rs 1.5 lakh of eligible investments and payments can be deducted from taxable income under the old tax regime, which can save up to about Rs 46,800 including cess for someone in the 30 percent slab.
What is the deduction limit under Section 80D?
Under the old regime, up to Rs 25,000 for health insurance premiums for self, spouse and dependent children, and an additional Rs 25,000 for parents — rising to Rs 50,000 where the insured person is a senior citizen. Preventive health check-ups of up to Rs 5,000 are included within these limits.
How does Section 80G work for donations?
Section 80G allows a deduction for donations to notified funds and approved institutions, at either 50 percent or 100 percent of the donation, and in some cases restricted to 10 percent of your adjusted gross total income. Cash donations above Rs 2,000 do not qualify, so donate by bank transfer, cheque or UPI and keep the receipt with the institution's registration details.
Are 80C, 80D and 80G available in the new tax regime?
No. These deductions are generally available only under the old tax regime. The new regime offers lower slab rates instead, along with a limited set of benefits such as the standard deduction for salaried taxpayers and the employer NPS contribution under 80CCD(2). Compare both regimes for your own numbers before choosing.
Is the maturity amount from a life insurance policy tax-free?
Maturity proceeds are exempt under Section 10(10D) subject to conditions, including premium-to-sum-assured limits and aggregate premium thresholds introduced in recent Finance Acts. Death benefit is treated separately. Check the terms that apply to your specific policy.