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Section 80C allows deduction up to ₹1.5 lakh from taxable income. Save up to ₹46,800 in tax. Complete list of all eligible investments and expenses for FY 2025-26.
| Investment | Deduction Limit | Lock-in | Expected Returns | Risk |
|---|---|---|---|---|
| PPF (Public Provident Fund) | Up to ₹1.5L | 15 years | 7.1% p.a. (tax-free) | Zero |
| ELSS Mutual Funds | Up to ₹1.5L | 3 years (shortest) | 12-15% p.a. (market-linked) | Medium |
| EPF (Employee Provident Fund) | 12% of salary | Till retirement | 8.15% p.a. (tax-free) | Zero |
| Life Insurance Premium (LIC) | Up to ₹1.5L | Policy term | 4-6% p.a. | Zero |
| NSC (National Savings Certificate) | Up to ₹1.5L | 5 years | 7.7% p.a. | Zero |
| 5-Year Tax Saver FD | Up to ₹1.5L | 5 years | 6.5-7.5% p.a. | Zero |
| Home Loan Principal Repayment | Up to ₹1.5L | 5 years in property | Asset appreciation | Low |
| Sukanya Samriddhi Yojana | Up to ₹1.5L | Till daughter turns 21 | 8.2% p.a. (tax-free) | Zero |
| Children's Tuition Fees | Up to ₹1.5L (2 children) | None | — | — |
| Senior Citizen Savings Scheme | Up to ₹1.5L | 5 years | 8.2% p.a. | Zero |
| Income Slab | Tax Rate | Tax Saved on ₹1.5L |
|---|---|---|
| ₹2.5L – ₹5L | 5% | ₹7,800 (incl. cess) |
| ₹5L – ₹10L | 20% | ₹31,200 (incl. cess) |
| Above ₹10L | 30% | ₹46,800 (incl. cess) |
Section 80C deduction is available ONLY in the old tax regime. If you switch to new tax regime (which is default from FY 2024-25), you CANNOT claim 80C. If your 80C investments are significant, compare both regimes before filing ITR. Our CA will calculate which regime saves you more.
ELSS (Equity Linked Savings Scheme) gives the best of both — highest potential returns AND 80C deduction. Lock-in is only 3 years vs 5-15 years for other options.
No. You can claim 80C only for your own LIC premium, your spouse's premium, or your children's premium. Parents' LIC premium does not qualify for 80C.
Yes. Your EPF contribution (12% of basic salary) is eligible under 80C. It is automatically deducted from salary and claimed in ITR. Employer's contribution does not count toward your 80C limit.
You can invest up to ₹1.5 lakh in PPF per year, but the 80C deduction is capped at ₹1.5 lakh total across all 80C investments. Extra investment above ₹1.5L in PPF earns interest but no additional 80C benefit.
If you don't invest under 80C, you lose the ₹1.5 lakh deduction. At 30% slab, this costs you ₹46,800 in additional tax. However, in new tax regime you cannot claim 80C anyway — so it doesn't matter if you switch to new regime.
CA claims every eligible deduction — 80C, 80D, HRA, home loan — to minimize your tax. File before July 31, 2026.
