Hello Aspirant,

80C is basically a deduction . It is more of nature of General Deduction, as it is allowed on total of all types of income (Technically, Gross Total Income) rather than on any specific income. This section has been introduced by the Finance Act 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section (alongwith section 80CCC and 80CCD) is limited to Rs. 1 lakh only (proposed to be increased to Rs. 1.50 lacs from 01.04.2014). It is a Section of Income tax act which allows you on some investment linked tax benefits