Section 80C Deductions —
The Complete List
Every investment and expense that qualifies under Section 80C, its lock-in and returns, why it works only under the old regime, which option is best for you and the old-vs-new break-even.
Section 80C lets an individual or HUF deduct up to Rs 1,50,000 a year for specified investments and expenses — only under the old tax regime. The main eligible items are EPF/VPF, PPF, ELSS, LIC premium, NSC, SCSS, Sukanya Samriddhi, 5-year tax-saving FD, ULIP, NPS Tier-1, home-loan principal, stamp duty and children's tuition fees. This Rs 1.5 lakh is a combined ceiling with Sections 80CCC and 80CCD(1). A full claim saves Rs 46,800 in tax at the 30% slab.
The Income-tax Act, 2025 renumbers the old Section 80C of the 1961 Act as Section 123 with effect from AY 2026-27. The Rs 1.5 lakh limit and the eligible-instrument list are unchanged, and everyone still calls it "80C" in practice.
Section 80C Eligible Investments & Expenses
Every item below counts towards the single combined Rs 1.5 lakh ceiling. Interest rates shown are small-savings rates for Q2 FY 2025-26 (Jul–Sep 2025), which the government reviews quarterly. For a deeper explainer of the section itself, see our Section 80C guide.
| Investment / Expense | Return | Lock-in | Notes |
|---|---|---|---|
| EPF / VPF (employee share) | 8.25% | Till retirement | Employee's 12% is auto-deducted; employer share is NOT part of 80C; VPF also qualifies |
| PPF (Public Provident Fund) | 7.1% | 15 years | Min Rs 500, max Rs 1.5L/yr; fully exempt (EEE); partial withdrawal after year 7 |
| ELSS mutual funds | Market | 3 years | Shortest 80C lock-in; LTCG above Rs 1.25L taxed at 12.5% |
| LIC / life-insurance premium | Policy | Policy term | Self, spouse or children; premium must be ≤10% of sum assured (policies after 1 Apr 2012) |
| NSC (National Savings Certificate) | 7.7% | 5 years | Accrued interest reinvested also qualifies (except final year) |
| SCSS (Senior Citizens Savings Scheme) | 8.2% | 5 years | Age 60+; max Rs 30 lakh; quarterly interest payout |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Till girl turns 21 | Girl child below 10; max 2 accounts; EEE like PPF |
| 5-year tax-saving bank/PO FD | 6.5–7.25% | 5 years | Interest is taxable; no premature withdrawal |
| NPS Tier-1 (80CCD(1)) | Market | Till age 60 | Within the 80C ceiling; extra Rs 50k via 80CCD(1B) |
| ULIP (Unit Linked Insurance Plan) | Market | 5 years | Subject to the 10%-of-sum-assured premium rule |
| Home-loan principal repayment | — | 5 years (no resale) | Only the principal; interest is separate under 24(b) |
| Stamp duty & registration | — | — | Claimable only in the year of property purchase |
| Tuition fees (up to 2 children) | — | None | Full-time education in India; no donation/development/transport fees |
Interest rates as of Q2 FY 2025-26; small-savings rates are revised quarterly. ELSS/NPS/ULIP returns are market-linked and not guaranteed.
EPF, PPF, ELSS, LIC, tuition fees and home-loan principal all draw from the same Rs 1.5 lakh ceiling. If your EPF contribution alone is already Rs 1.5 lakh, extra PPF or ELSS gives no further 80C deduction. Only the Rs 50,000 NPS deduction under 80CCD(1B) sits over and above this limit.
Which 80C Investment Is Best for You?
There is no single "best" 80C option — it depends on your risk appetite, horizon and how much of the limit your EPF already fills. Match your profile to the right instrument below.
| Your profile | Best 80C option | Why it fits |
|---|---|---|
| Risk-averse, long-term saver | PPF | Guaranteed, tax-free (EEE) and sovereign-safe |
| Wealth creation, equity exposure | ELSS | Shortest lock-in (3 yrs) and market-linked growth |
| Senior citizen (60+) | SCSS | High rate, quarterly payout, government-backed |
| Parent of a girl child | Sukanya Samriddhi | Highest small-savings rate, EEE status |
| Already salaried (EPF deducted) | Top up with PPF / ELSS | EPF covers part of 80C; fill the gap with liquid options |
Compare returns, lock-in and liquidity — not just the tax saving — before you commit.
Maxing 80C makes sense if
- You are on the old regime with income above Rs 5–6 lakh
- You already pay EPF, LIC premium or a home-loan EMI
- You want disciplined, tax-free long-term savings (PPF, SSY)
Reconsider if
- The new regime saves you more overall
- You would lock money in purely to save tax
- You need liquidity — most 80C options have long lock-ins
Not sure how to split your Rs 1.5 lakh across options?
Talk to a tax expert →80C Deductions Work Only Under the Old Regime
The new tax regime is now the default. It offers lower slab rates but disallows 80C and almost all other Chapter VI-A deductions. To claim 80C you must actively opt for the old regime when filing.
Old regime — 80C available
- Full Rs 1.5 lakh 80C deduction
- 80D, 80CCD(1B) & 24(b) home-loan interest allowed
- Standard deduction Rs 50,000 (salaried)
- Best when total deductions are high
New regime (default) — no 80C
- Section 80C not available
- Only 80CCD(2) employer NPS & 80JJAA allowed
- Standard deduction Rs 75,000 (salaried)
- Rebate u/s 87A up to Rs 12L taxable income
- Simpler — best with few deductions
A common rule of thumb: the old regime tends to win once total deductions clear roughly Rs 3.75 lakh (e.g. Rs 1.5L 80C + Rs 25k 80D + Rs 2L HRA/home-loan interest), but the exact break-even depends on your income and slab. If your deductions are modest, the new regime's lower rates and Rs 75k standard deduction can beat the old regime even without 80C — run the numbers first.
Want to know which regime saves you more?
Compare with an expert →How to Claim 80C Deductions in Your ITR
- PPF passbook / online statement
- ELSS fund investment statement
- LIC / ULIP premium receipts
- EPF & VPF annual statement
- Home-loan principal certificate
- Stamp duty & registration receipts
- Children's tuition fee receipts
- NSC / SSY / SCSS certificates
- Form 12BB submitted to employer
- Old regime selected before filing
For a home loan, only the principal qualifies under 80C; the interest is claimed separately under Section 24(b) (up to Rs 2 lakh for a self-occupied house). If you sell the property within 5 years of possession, the 80C principal deductions claimed earlier are reversed and added back to income in the year of sale.
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Get ITR Filing Help →80C Deductions — Frequently Asked Questions
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