Section 80C Deductions — Complete List
Updated June 2026 · VerifiedWhat Investments Qualify Under Section 80C?
Below is the complete list of eligible investments and expenses under Section 80C for Tax Year 2026-27:
| Investment / Expense | Lock-in Period | Key Details |
|---|---|---|
| EPF (Employee Provident Fund) | Till retirement | Employee’s contribution (12% of basic) is auto-deducted from salary; employer’s share is not deductible under 80C. |
| VPF (Voluntary Provident Fund) | Till retirement | Additional voluntary contribution beyond 12%; same tax treatment as EPF. |
| PPF (Public Provident Fund) | 15 years | Min ₹500, max ₹1,50,000/year. Interest and maturity are tax-free (EEE status). |
| ELSS (Equity Linked Savings Scheme) | 3 years | Shortest lock-in among 80C options. Returns are market-linked. LTCG above ₹1.25 lakh taxed at 12.5%. |
| LIC Premium | Policy term | Premium on life insurance for self, spouse, or children. Maximum premium must not exceed 10% of sum assured (for policies issued after 01-Apr-2012). |
| NSC (National Savings Certificate) | 5 years | Fixed-income government savings instrument. Accrued interest is reinvested and also qualifies under 80C (except in the last year). |
| SCSS (Senior Citizens Savings Scheme) | 5 years | For individuals aged 60+. Max deposit ₹30 lakh. Quarterly interest payouts. |
| Tax-Saver Fixed Deposits | 5 years | 5-year FDs with banks or post offices. Interest is taxable. |
| Sukanya Samriddhi Yojana (SSY) | 21 years (or marriage) | For girl child (max 2 accounts). EEE status like PPF. |
| NPS (National Pension System) | Till age 60 | Contribution under 80C up to ₹1.5 lakh. Additional ₹50,000 under 80CCD(1B) in old regime. |
| Tuition Fees | N/A | Full-time tuition fees for up to 2 children. Development fees and donations do not qualify. |
| Home Loan Principal Repayment | 5 years (no sale) | Principal component of home loan EMI. If property is sold within 5 years, deduction is reversed. |
| Stamp Duty & Registration Charges | N/A | Claimable in the year of payment for residential property purchase. |
| ULIP (Unit Linked Insurance Plan) | 5 years | Premium payments on ULIP policies. Subject to the 10% sum-assured rule. |
What Is the Maximum Limit Under Section 80C?
The aggregate deduction under Sections 80C, 80CCC, and 80CCD(1) is capped at ₹1,50,000 per financial year. This means:
- Your EPF contribution, PPF deposit, ELSS investment, LIC premium, tuition fees, and home loan principal — all count towards the same ₹1.5 lakh basket.
- If your EPF contribution alone is ₹1,50,000, you have exhausted the 80C limit. Additional investments in PPF or ELSS will not yield further deductions under this section.
- The additional ₹50,000 deduction under Section 80CCD(1B) for NPS is over and above the ₹1.5 lakh limit.
Which 80C Investment Is Best?
The optimal choice depends on your risk appetite and financial goals:
| Profile | Best 80C Option | Why |
|---|---|---|
| Risk-averse, long-term saver | PPF | Guaranteed returns, EEE status, sovereign safety |
| Wealth creation, equity exposure | ELSS | Shortest lock-in (3 years), historically higher returns |
| Senior citizens | SCSS | High interest rate, quarterly payouts, government-backed |
| Parents with daughters | Sukanya Samriddhi | Highest small-savings rate, EEE status |
| Already salaried (EPF deducted) | Top up with PPF/ELSS | EPF already covers part of 80C; fill the gap with liquid options |
How Does 80C Interact with the New vs Old Regime Decision?
Under the new regime, Section 80C is not available. The break-even point for choosing the old regime over the new regime is approximately ₹3,75,000 in total deductions. If your combined deductions (80C + 80D + HRA + home loan interest + others) exceed this threshold, the old regime typically saves more tax.
Frequently Asked Questions
Can I claim 80C deductions under the new tax regime?
No. Section 80C deductions are not available under the new tax regime. If you want to claim 80C, you must opt for the old regime while filing your ITR for Tax Year 2026-27.
Is the EPF employer contribution eligible under 80C?
No. Only the employee’s contribution to EPF qualifies under Section 80C. The employer’s contribution (up to 12% of basic) is exempt separately and does not count towards the ₹1.5 lakh limit.
Can I claim tuition fees for more than 2 children?
No. Section 80C allows tuition fee deduction for a maximum of 2 children. Only full-time education fees at schools, colleges, or universities in India qualify. Coaching classes, development fees, and donations are excluded.
What happens if I sell a property within 5 years of claiming home loan principal under 80C?
If you sell the property within 5 years of possession, the 80C deduction claimed on the home loan principal repayment in all prior years is added back (“reversed”) to your income in the year of sale and taxed accordingly.
Can HUFs claim Section 80C deductions?
Yes. Hindu Undivided Families (HUFs) can claim Section 80C deductions for eligible investments made in the name of the HUF, such as PPF (in the name of a member), LIC premiums, and ELSS investments. The ₹1.5 lakh limit applies to the HUF as a separate entity.
Income Tax Return Filing Near You
Expert CA/CS assistance for income tax return filing across India. Click your city for local details.