Income Tax Act, 1961 | Chapter VI-A
Section 80CCE: Combined Deduction Limit under Sections 80C, 80CCC and 80CCD
Section 80CCE places an overall ceiling of Rs. 1,50,000 on the combined deductions claimed under Section 80C, Section 80CCC and Section 80CCD(1). This limit applies when these deductions are available under the old tax regime.
Meaning and scope of Section 80CCE
Section 80CCE of the Income-tax Act, 1961 provides that the aggregate deduction under Section 80C, Section 80CCC and Section 80CCD(1) cannot exceed Rs. 1,50,000 in any case. It is a combined cap, not a separate Rs. 1,50,000 allowance for each provision.
Deductions included in the combined limit
| Provision | What it covers | Treatment under Section 80CCE |
|---|---|---|
| Section 80C | Specified investments and payments such as eligible life insurance premiums, provident fund contributions, tuition fees, principal repayment of qualifying housing loans and certain savings schemes. | Included within combined Rs. 1,50,000 cap. |
| Section 80CCC | Qualifying contributions to specified pension or annuity plans of LIC or other insurers. | Included within combined Rs. 1,50,000 cap. |
| Section 80CCD(1) | Eligible personal contributions to notified pension schemes, including NPS, subject to the applicable percentage limits. | Included within combined Rs. 1,50,000 cap. |
NPS deductions outside Section 80CCE
Section 80CCD(1B): Under the old regime, a separate deduction of up to Rs. 50,000 may be available for eligible NPS contributions, over and above the Rs. 1,50,000 combined limit. The same contribution cannot be claimed twice. From AY 2026-27, the provision also covers eligible contributions made by a parent or guardian to a minor's qualifying NPS account, within the same overall Rs. 50,000 limit.
Section 80CCD(2): Eligible employer contributions to NPS are deductible separately and are not covered by Section 80CCE. For AY 2026-27, the deduction generally has a salary-based ceiling of 14% for government employers under the old regime and 10% for other employers under the old regime; under the new regime the ceiling is 14% for eligible employer categories. Other applicable statutory conditions continue to apply.
Example of the Rs. 1,50,000 combined ceiling
Suppose an individual eligible for old-regime deductions makes Rs. 1,00,000 of qualifying Section 80C payments, Rs. 40,000 of qualifying Section 80CCC contributions and Rs. 50,000 of eligible contributions under Section 80CCD(1). Although the total is Rs. 1,90,000, the combined deduction allowed under Section 80CCE is restricted to Rs. 1,50,000. An independently eligible contribution claimed under Section 80CCD(1B) may give an additional deduction, subject to its separate limit.
Old tax regime versus new tax regime
The deductions under Sections 80C, 80CCC, 80CCD(1) and 80CCD(1B) are generally not available when income is taxed under the default new tax regime under Section 115BAC(1A). Eligible employer NPS contributions under Section 80CCD(2) may still be deducted in the new regime. Taxpayers should check their eligibility and any required option for the old regime before filing.
Related provisions and practical points
- Section 80A: Chapter VI-A deductions are subject to the general statutory rules, including the restriction that aggregate deductions cannot exceed gross total income.
- Section 80B(5): Defines gross total income for the purposes of Chapter VI-A.
- Section 80CCD(1): Personal pension-scheme contributions are also subject to applicable individual percentage limits, in addition to Section 80CCE.
- Section 80CCD(1B): Provides a separate deduction of up to Rs. 50,000 for qualifying contributions.
- Section 80CCD(2): Covers qualifying employer contributions separately from the combined limit.
Frequently asked questions
Is the Section 80CCE limit Rs. 1 lakh or Rs. 1.5 lakh?
The current combined limit under Section 80CCE is Rs. 1.5 lakh. The Rs. 1 lakh figure is historical and should not be used for AY 2026-27.
Can I claim Rs. 1.5 lakh under Section 80C and another Rs. 1.5 lakh under Section 80CCC?
No. Section 80CCE restricts the aggregate eligible deduction under Sections 80C, 80CCC and 80CCD(1) to Rs. 1.5 lakh.
Does Section 80CCE include the additional Rs. 50,000 NPS deduction?
No. Eligible deductions under Section 80CCD(1B) are separate from the combined Section 80CCE ceiling.
Does the new tax regime allow Section 80C deductions?
Generally no. The new regime disallows Section 80C and the related personal deductions discussed here, although qualifying employer contributions under Section 80CCD(2) remain eligible.
Official references
- Income Tax Department: Deductions from gross total income
- Income Tax Department: Various deductions under the Income-tax Act
- Income Tax Department: Old versus new tax regime FAQs
- Income Tax Department: Salaried individuals, AY 2026-27
Updated October 2026. This article explains the provisions of the Income-tax Act, 1961 relevant to the stated assessment year. Check applicable law and official filing instructions for your specific year and circumstances.