Section 80C of the Income Tax Act is the most widely used deduction by Indian taxpayers. It allows a deduction of up to \u20b91,50,000 per financial year from your gross taxable income, potentially saving up to \u20b946,800 in taxes if you are in the 30% bracket.
Who Can Claim Section 80C?
Any individual or HUF (Hindu Undivided Family) taxpayer can claim 80C deductions. It is available under the old tax regime only.
All Eligible Investments and Payments
- ELSS Mutual Funds: 3-year lock-in, market-linked returns, best liquidity among 80C options
- PPF (Public Provident Fund): 15-year lock-in, currently 7.1% interest, EEE status (Exempt-Exempt-Exempt)
- Employee Provident Fund (EPF): Your own contribution is counted toward 80C automatically
- NSC (National Savings Certificate): 5-year lock-in, 7.7% interest, good for conservative investors
- Tax-Saving FD: 5-year lock-in, interest is taxable
- Life Insurance Premium: Premium paid for self, spouse, or children
- ULIP: Insurance + investment combo, 5-year lock-in
- Sukanya Samriddhi Account: For girl child below 10, 8.2% interest, EEE status
- Home Loan Principal Repayment: EMI principal component qualifies under 80C
- Children\u2019s Tuition Fees: Fees paid to schools, colleges, universities (up to 2 children)
- NPS Tier-I: Basic NPS contribution under 80CCD(1) is part of the 80C ceiling
- Senior Citizen Savings Scheme (SCSS): For those 60+, 8.2% interest
Strategy: Best Combination for 2025-26
- EPF (auto-deducted) + ELSS top-up to reach \u20b91.5 lakh is the most popular approach
- Add NPS under 80CCD(1B) for an extra \u20b950,000 deduction beyond the 80C ceiling
Use the SaveTaxNow Calculator to model exactly how 80C deductions reduce your final tax liability.