Tax · ₹1.5L deduction
Section 80C Tax Saving
Section 80C is the most popular tax-saving lever — ₹1.5L deduction from taxable income, available only under the OLD regime. The full list: ELSS, PPF, EPF, NSC, NPS Tier-I, life insurance premium, home loan principal, sukanya samriddhi, 5-yr tax-saver FD, Senior Citizens Savings Scheme, tuition fees. Maxing it saves ~₹46K-46K tax depending on slab.
Who needs this
Anyone in the OLD tax regime. New-regime taxpayers don't get 80C — switch back to old if 80C maxing makes meaningful difference (run our Old vs New calc).
Key dates
- ELSS — last day of FYMar 31, 2026
- PPF deposit deadline (interest credited)Apr 5, 2026 (for full-year interest)
- ITR claim — claim 80C in your returnJul 31, 2026
Key decisions
- Q1
Best 80C investment for me?
ELSS for highest returns + lowest lock-in (3 yrs). PPF for 100% guaranteed (15-yr lock-in). EPF if salaried (auto-deducted). Avoid endowment / ULIP — high cost, low return.
- Q2
Should I exhaust ₹1.5L every year?
Yes if old regime + slab ≥ 20%. Each ₹1L invested saves ₹20K-46K tax (slab dependent). At 30% slab: ₹1.5L 80C = ₹46K tax saved annually.
- Q3
ELSS or PPF — which one?
ELSS: 3-yr lock-in, equity-linked, 12-15% historical returns, taxable LTCG > ₹1.25L. PPF: 15-yr lock-in, govt-guaranteed 7.10%, 100% tax-free. Most should split 60% ELSS / 40% PPF.
- Q4
What if I exceed ₹1.5L cap?
Excess investment is fine — but no extra deduction. Invest remainder in NPS for the additional ₹50K under 80CCD-1B (separate from 80C cap).
CBDT rules + tax-act references
- Section 80C ONLY available under OLD regime.
- Cap is ₹1.5L COMBINED across all 80C options.
- Section 80CCD-1B (NPS): additional ₹50K, separate cap.
- Premium for own life insurance is 80C eligible only if cover ≥ 10× annual premium.
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