What comes under 80C deduction?

Section 80C deductions (max ₹1.5 lakh): EPF employee contribution, PPF deposits, ELSS mutual fund investments, NSC purchases, LIC premium, 5-year tax saving FD, home loan principal repayment, children's tuition fee (up to 2 children), Sukanya Samriddhi deposits, NPS Tier-1 contribution (part of 80C limit), ULIP premium, pension scheme contribution.

Which 80C investment gives highest return?

Returns comparison for 80C investments: ELSS mutual funds: 12-18% CAGR (market-linked, highest potential), EPF: 8.25% guaranteed, NSC: 7.7% guaranteed, PPF: 7.1% guaranteed, SSY: 8.2% guaranteed (girl child only), Tax-saving FD: 7.0-7.4%, LIC: 5-6% (lowest, avoid for pure investment). Best choice: ELSS for long-term growth, PPF for safe returns, EPF is automatic.

Can I claim 80C without investing?

No, you cannot claim 80C without actual investment. However, many people already have 80C investments they forget to count: EPF deducted from salary counts, home loan principal repayment counts, children's school tuition fee counts, LIC premiums paid count. Check if you already have ₹1.5L covered before making new investments.

Is 80C available in new tax regime?

No. Section 80C deduction is NOT available under the new tax regime. New regime has lower slab rates but does not allow 80C, HRA, home loan interest, or most deductions. If you want to claim 80C, you must opt for the old tax regime. Compare both regimes to see which saves more for your income level.

80C limit FY 2025-26?

Section 80C deduction limit is ₹1,50,000 (₹1.5 lakh) for FY 2025-26. This limit has not changed since FY 2014-15. The limit is shared across all 80C instruments — you cannot claim more than ₹1.5L total from all 80C sources combined. In addition, 80CCD(1B) gives extra ₹50,000 for NPS investment over and above this limit.

💰 Section 80C · FY 2025-26 · Old Regime Only

Section 80C Deductions — Complete Guide 2026

All 80C eligible investments ranked by return. ₹1.5L limit. Find out which saves most tax and builds most wealth.

₹1.5L limit Save up to ₹46,800 tax Old regime only

📊 80C Investment Planner — Check Your Limit Usage

💡 Enter your investments below. We'll show how much of ₹1.5L limit you've used and how much tax you save.

Employee PF (auto-deducted from salary)

PPF Deposit

ELSS Mutual Fund SIP

NSC Purchase

LIC / Insurance Premium

Tax-saving FD

Home Loan Principal (annual)

Children's Tuition Fee

80C Used ₹21,600

₹0₹1,21,600 remaining₹1,50,000

TAX SAVED (30% SLAB)

₹6,709

MAX POSSIBLE SAVING

₹46,800

(₹1.5L × 30% + cess)

✅ You have ₹1,28,400 more to invest under 80C. Consider ELSS for best returns.

🏆 All 80C Options — Ranked by Return

📈

ELSS Mutual Funds Market-linked

12-18% CAGR historical

Best return potential among all 80C options. 3-year lock-in (shortest). LTCG above ₹1.25L taxed at 12.5%. Start SIP from ₹500/month. Available via Upstox, Groww, Zerodha. Best for long-term wealth creation alongside tax saving.

📊 Calculate ELSS SIP returns →

🏦

EPF — Employee Provident Fund Auto-deducted

8.25% guaranteed

Already happening from your salary — 12% of basic. Employer contributes matching 12%. Interest is tax-free. Count your EPF first before planning other 80C investments. Check payslip for exact annual EPF contribution.

📊 EPF maturity calculator →

👧

Sukanya Samriddhi Yojana (SSY) Girl child only

8.2% tax-free

Highest rate government scheme (EEE — triple tax free). Only for girl children below 10 years. Max ₹1.5L/year for 15 years. Matures at 21 years. Open at SBI or post office. If you have a daughter below 10, this is the best 80C option.

📊 SSY calculator →

📮

NSC — National Savings Certificate Government

7.7% p.a.

5-year lock-in. Post Office backed. Interest compounded annually but paid at maturity. Years 1-4 interest reinvested = also counts as 80C! Only Year 5 interest is taxable. Better than tax-saving FD for 5-year horizon.

📊 NSC maturity calculator →

🏛️

PPF — Public Provident Fund EEE Tax-free

7.1% tax-free

15-year lock-in. Fully tax-free returns (EEE). Partial withdrawal after 7 years. Loan against PPF from Year 3-6. Best for long-term goals like retirement. Lower rate than NSC but completely tax-free makes it better for 30% slab.

📊 PPF maturity calculator →

🏠

Home Loan Principal Repayment If you have home loan

No extra investment

Principal repaid on home loan automatically qualifies for 80C — no additional investment needed! Check home loan statement from your bank. Along with Section 24b (interest deduction up to ₹2L), home loan gives massive tax benefits.

📊 Home loan EMI calculator →

🏦

5-Year Tax-Saving Fixed Deposit Bank-backed

7.0-7.4% p.a.

5-year mandatory lock-in. No premature withdrawal allowed. Interest is taxable (unlike PPF/NSC). Simple to open at any bank. Best for senior citizens (extra 0.5% rate) or those who want simple bank-backed investment. Slightly lower post-tax return than NSC.

📊 FD maturity calculator →

🎓

Children's Tuition Fee Already paying?

No extra investment

School tuition fee (not development fee, bus fee, or donation) for up to 2 children qualifies for 80C. Count this before making other investments. Eligible only for full-time regular school, college, or university in India.

📈 Start ELSS SIP for best 80C returns

Free demat · Invest in ELSS from ₹500/month · 3-year lock-in only

📊 Open Upstox Free → 🎁 Free MF Offers →

80C + NPS = ₹2 Lakh Total Deduction

Beyond the ₹1.5L 80C limit, Section 80CCD(1B) allows an additional ₹50,000 deduction for NPS (National Pension System) investment. This is OVER AND ABOVE the ₹1.5L limit. Combined: ₹1.5L (80C) + ₹50K (NPS) = ₹2 lakh total deduction. At 30% tax slab this saves ₹62,400 in tax (₹2L × 30% + cess). NPS also builds retirement corpus with market-linked returns of 10-12% historically.

80C Strategy — What to Do First

Step 1: Check how much EPF is already deducted from your salary (it's on your payslip). Step 2: Check if you have a home loan — principal repaid counts. Step 3: Check children's tuition fee paid. Step 4: If remaining gap exists after Steps 1-3, fill with ELSS SIP (best returns), PPF (safest long-term), or NSC (medium-term). Step 5: Add NPS ₹50K via 80CCD(1B) separately for extra deduction.

Is 80C Worth it in 2026?

80C is only useful under the OLD tax regime. Under new regime (which is the default), 80C gives zero benefit. So first decide: is old regime better for you? If you have ₹3L+ in total deductions (80C + HRA + home loan + 80D), old regime likely saves more. If you have minimal deductions, new regime is better and 80C doesn't matter. Use our tax comparison tool to decide before investing for tax saving.

Frequently Asked Questions

Can I claim both 80C and 80CCD?▼

Yes! 80C (₹1.5L) and 80CCD(1B) (₹50K NPS) are separate. Total = ₹2L deduction. However, 80CCD(1) — your own NPS contribution up to 10% of salary — is part of the ₹1.5L 80C limit. 80CCD(1B) is an additional ₹50K specifically for NPS.

What is the last date to invest for 80C FY 2025-26?▼

March 31, 2026 is the deadline for 80C investments for FY 2025-26. Any investment made on or before March 31, 2026 qualifies. Exception: PPF deposits for April onwards count in next FY. Plan and invest before January to avoid last-minute rush and get full year's returns.

How much tax do I save with full 80C?▼

At 30% slab: ₹1.5L × 30% = ₹45,000 + 4% cess = ₹46,800 savings. At 20% slab: ₹1.5L × 20% = ₹30,000 + cess = ₹31,200. At 5% slab: ₹1.5L × 5% = ₹7,500 + cess = ₹7,800. The higher your tax slab, the more 80C saves.

ELSS vs PPF — which is better for 80C?▼

ELSS: 12-18% historical returns, 3-year lock-in, market risk, tax on LTCG above ₹1.25L. PPF: 7.1% guaranteed, 15-year lock-in, zero risk, fully tax-free. For 10+ year horizon: ELSS likely gives 2-3× more corpus. For safe guaranteed returns: PPF. Ideal: split — some ELSS + some PPF. Don't put everything in LIC — worst returns.