Section 80C Deductions FY 2025-26 - Save Up to ₹46,800 in Tax
Section 80C allows you to reduce your taxable income by up to ₹1.5 lakh by investing in specified instruments. From PPF to ELSS to LIC — understand every eligible investment, returns, lock-in periods, and how to maximise your tax saving.
In This Guide
- 80C Deduction Calculator - Fill Your Investments
- All Section 80C Eligible Investments - Complete List
- Investment Comparison - Returns, Lock-in, Risk
- EPF & PPF - The Automatic & Safe Options
- ELSS Mutual Funds - Best Returns with Shortest Lock-in
- Beyond 80C - 80CCD, 80D, 80E for Additional Saving
- Frequently Asked Questions
Section 80C Calculator FY 2025-26
Enter your annual investments. The calculator tracks your ₹1.5 lakh limit in real time.
80C Summary
FY 2025-26 | Old Regime
All Section 80C Eligible Investments — Complete List
Everything that qualifies for the ₹1.5 lakh deduction — investments, insurance, expenses, and auto-deductions.
| Investment | Interest / Returns | Lock-in | Returns Taxable? | Max Investment |
|---|---|---|---|---|
| Employee Provident Fund (EPF) | 8.25% p.a. (FY 2025-26) | Till retirement / 5 yrs | EEE — Tax-Free | 12% of Basic (mandatory) |
| Public Provident Fund (PPF) | 7.1% p.a. (Q1 FY26) | 15 years | EEE — Tax-Free | ₹1,50,000/yr |
| ELSS Mutual Funds | Market-linked (12-18% historical) | 3 years (shortest) | LTCG 12.5% above ₹1.25L | No limit |
| National Savings Certificate (NSC) | 7.7% p.a. (Q1 FY26) | 5 years | Taxable (but reinvested interest = 80C) | No limit |
| Senior Citizens Savings Scheme (SCSS) | 8.2% p.a. (Q1 FY26) | 5 years (extendable 3 yr) | Taxable (TDS if >₹50K/yr) | ₹30,00,000 |
| Sukanya Samriddhi Yojana (SSY) | 8.2% p.a. (Q1 FY26) | Till girl turns 21 | EEE — Tax-Free | ₹1,50,000/yr |
| 5-Year Tax Saving FD | 6.5% – 7.5% p.a. (varies) | 5 years (no premature) | Taxable + TDS | ₹1,50,000 (for 80C) |
| LIC / Life Insurance Premium | Traditional: 4-6%; Term: no returns | Policy term | Maturity exempt if premium ≤ 10% SA | No limit |
| NPS Tier-I (Self Contribution) | Market-linked (~9-12% historical) | Till age 60 | 60% exempt; 40% annuity taxable | 10% of salary (within 1.5L) |
| Home Loan Principal Repayment | N/A (debt repayment) | 5 yrs (can't sell property) | N/A | Within 1.5L overall limit |
| Children's Tuition Fees | N/A (expense) | N/A | N/A | Up to 2 children |
| Stamp Duty on Property Purchase | N/A (expense) | N/A | N/A | Year of purchase only |
Investment Comparison — Which 80C Option is Right for You?
Best for Wealth Creation
- Shortest lock-in: 3 years
- Historical returns: 12-18% p.a.
- SIP available — invest ₹500/month
- Market risk — returns not guaranteed
Best for Safety + Tax-Free Returns
- 7.1% p.a. tax-free (EEE status)
- Sovereign government guarantee
- Good for long-term retirement corpus
- 15-year lock-in (partial withdrawal after 7)
Best for Senior Citizens
- SCSS: 8.2% — highest guaranteed rate
- Quarterly interest payout (cash flow)
- Max ₹30 lakh investment
- Interest is taxable (TDS if >₹50K/yr)
Best for Girl Child (Parents)
- 8.2% p.a. — fully tax-free (EEE)
- Govt guarantee + best small-saving rate
- Minimum ₹250/yr investment
- Only for girl child below 10 years
Optimal Strategy for Most Salaried Employees: Let EPF auto-contribution partially fill your 80C limit. Invest the balance in ELSS (for growth) or PPF (for safety). Avoid overloading on LIC traditional plans — their returns are often below inflation. Always buy pure term insurance separately for life cover, not for tax saving.
EPF & PPF — The Automatic and Safe 80C Options
Employee Provident Fund (EPF)
Many salaried employees already have ₹50K-₹80K in EPF contributions automatically. Check your payslip to avoid duplicate 80C planning. VPF (Voluntary PF) contributions above 12% also qualify.
Public Provident Fund (PPF)
Invest before April 5 each financial year to earn interest for the full year. PPF interest is calculated on minimum balance between 5th and end of month. A lumpsum investment on April 4 maximises interest earned for the full year.
ELSS Mutual Funds — Best Returns with Shortest Lock-in
ELSS (Equity Linked Savings Scheme) is the only 80C investment that offers market-linked returns with just a 3-year lock-in — making it ideal for long-term wealth creation alongside tax saving.
How ELSS Works
ELSS funds invest primarily in equities (stocks). Each SIP instalment has its own 3-year lock-in from the investment date — not from the first SIP. So a SIP started in April 2025 becomes redeemable from April 2028.
Tax on ELSS Redemption
Gains on ELSS redemption are treated as Long Term Capital Gains (LTCG) at 12.5%. The ₹1.25 lakh annual LTCG exemption applies. So if your total ELSS gains in a year are below ₹1.25 lakh, they are completely tax-free.
SIP vs Lumpsum
For 80C planning, SIP investments made before March 31 count for that financial year. A lumpsum investment near March 31 gives the full ₹1.5L deduction immediately. SIP spreads investment across the year — same tax benefit, better rupee cost averaging.
Risk Warning
ELSS returns depend entirely on equity market performance. In a bad year, your investment can lose value even after the 3-year lock-in. ELSS is for investors with medium to high risk appetite and a minimum 5-7 year investment horizon despite the 3-year mandatory lock-in.
Beyond 80C — Additional Tax-Saving Deductions
Even after maxing out 80C, you can save more tax through these additional sections — all available in the Old Regime.
Additional NPS Contribution
Extra ₹50,000 deduction for NPS Tier-I self-contributions — over and above the ₹1.5L 80C limit.
Employer NPS Contribution
Employer's NPS contribution — up to 14% of basic (Govt) / 10% (private). Available in New Regime too.
Health Insurance Premium
₹25,000 for self + family. Additional ₹50,000 for senior citizen parents. Total up to ₹75,000 deduction.
Education Loan Interest
Interest on education loan for higher studies (self, spouse, children). No upper limit — full interest deductible for 8 years.
Maximum Tax You Can Save (Old Regime, 30% Slab)
All amounts include 4% health & education cess. Home loan interest saving based on Sec 24(b) ₹2L limit at 30%+cess.
Frequently Asked Questions
File Your ITR & Claim All 80C Benefits
CA-assisted ITR filing from ₹499. We ensure every eligible 80C investment is claimed, Old vs New Regime is compared, and your tax is minimised.
indiantaxplanning.in · CA-verified · Updated March 2026
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