Old Tax Regime — FY 2025-26
Section 80C Tax Saving Investments
Complete list of all eligible investments under Section 80C with returns, lock-in periods, and tax treatment. Maximum deduction: ₹1,50,000 per year.
◆ Section 80C Limit: ₹1,50,000 per year (Old Regime only)
All Section 80C Investments — FY 2025-26
Invest up to ₹1,50,000 across these instruments. You can combine multiple investments — the aggregate deduction is capped at ₹1.5 lakh.
Market-Linked Investments
ELSS
Equity Linked Savings Scheme (Tax Saving Mutual Fund)
Returns
12–18% p.a.*
Lock-in
3 years
Min SIP
₹500/mo
Risk
High
Shortest lock-in among all 80C options. Returns are market-linked — best for long-term wealth creation. LTCG above ₹1L taxed at 10%.
Market-linked80C eligible
NPS Tier 1
National Pension System — Employee/Voluntary contribution
Returns
8–12% p.a.*
Lock-in
Till 60 yrs
Min
₹500/yr
Risk
Medium
80C deduction up to ₹1.5L. Additional ₹50,000 under Sec 80CCD(1B). Partial withdrawal allowed after 3 years for specific purposes. 60% corpus tax-free on maturity.
Market-linked80C + 80CCD
ULIP
Unit Linked Insurance Plan
Returns
8–12% p.a.*
Lock-in
5 years
Insurance
Yes
Risk
Medium-High
Combines insurance + investment. Charges (premium allocation, fund management, mortality) can reduce returns. Maturity exempt under Section 10(10D) if premium < 10% of sum assured.
Market-linked80C eligible
Guaranteed / Fixed Return Investments
PPF
Public Provident Fund
Rate
7.1% p.a.
Lock-in
15 years
Max/yr
₹1.5L
Tax
EEE
Sovereign guarantee. Interest is tax-free. Maturity proceeds tax-free. Partial withdrawal from 7th year. Loan available from 3rd–6th year. Best for risk-averse long-term savers.
Risk-freeGovt guaranteed80C eligible
NSC
National Savings Certificate (VIII Issue)
Rate
7.7% p.a.
Lock-in
5 years
Min
₹1,000
Tax
ETE
Interest is compounded annually but paid at maturity. Interest accrued each year is deemed reinvested and also qualifies for 80C deduction (except last year). Maturity proceeds are taxable.
Risk-freePost office80C eligible
SCSS
Senior Citizen Savings Scheme (60+ years)
Rate
8.2% p.a.
Tenure
5 yrs (+3)
Max
₹30L
Eligible
60+ yrs
Highest guaranteed rate for senior citizens. Quarterly interest payout. TDS applies if interest > ₹50,000/yr. Can be opened within 1 month of retirement (for those retiring at 55+).
Risk-freeGovt guaranteed80C eligible
Tax Saver FD
Bank Fixed Deposit (5-year tax saving)
Rate
6.5–7.5%
Lock-in
5 years
Min
₹100
Tax
Taxable
Interest is fully taxable (added to income). TDS at 10% if interest > ₹40,000/yr. No premature withdrawal allowed. Available in all major banks. Simple and accessible.
Risk-free80C eligible
SSY
Sukanya Samriddhi Yojana (for girl child)
Rate
8.2% p.a.
Lock-in
21 yrs
Max/yr
₹1.5L
Tax
EEE
For girl children below 10 years. One account per girl child, max 2 children. Account matures 21 years from opening. Partial withdrawal (50%) allowed after girl turns 18. Fully tax-free.
Risk-freeGovt guaranteed80C eligible
Insurance Premiums
Life Insurance Premium
LIC / Private insurer term/endowment plans
80C Limit
₹1.5L cap
Condition
Prem < 10% SA
Premium paid for self, spouse, children qualifies. Premium must not exceed 10% of sum assured (20% for policies before April 2012). Maturity proceeds exempt under Section 10(10D) if condition met.
80C eligible
Employer Contributions & Other Deductions
EPF — Employee Contribution
Employees' Provident Fund
Rate
8.25% p.a.
Contribution
12% of basic
Tax
EEE
Risk
Nil
Employee's 12% contribution is automatically deducted and qualifies under 80C. Employer's 12% is separate. Withdrawals after 5 continuous years are tax-free. Interest is tax-free up to ₹2.5L/yr contribution.
Auto-deductedGovt backed80C eligible
Home Loan Principal Repayment
Section 80C for EMI principal component
Limit
₹1.5L cap
Condition
5-yr holding
Principal portion of home loan EMI qualifies. If property sold within 5 years of possession, deduction is reversed and added to income. Stamp duty and registration charges also qualify in the year paid.
80C eligible
Children's Tuition Fees
Full-time education for up to 2 children
Limit
₹1.5L cap
Children
Max 2
Only tuition fees (not development fees, donations, hostel charges) qualify. For full-time education in Indian schools, colleges, universities. Adoption children also qualify.
80C eligible
Quick Comparison — All Section 80C Investments
| Investment | Returns (p.a.) | Lock-in | Tax on Returns | Risk | Best For |
|---|---|---|---|---|---|
| ELSS | 12–18%* | 3 years | 10% LTCG above ₹1L | High | Wealth creation, young investors |
| PPF | 7.1% | 15 years | Tax-free (EEE) | Nil | Long-term, risk-averse |
| NSC | 7.7% | 5 years | Taxable at maturity | Nil | Medium-term guaranteed |
| SCSS | 8.2% | 5+3 years | Taxable (TDS if >₹50K) | Nil | Senior citizens |
| Sukanya Samriddhi | 8.2% | 21 years | Tax-free (EEE) | Nil | Girl child savings |
| Tax Saver FD | 6.5–7.5% | 5 years | Fully taxable | Nil | Simple, accessible |
| EPF | 8.25% | Till retirement | Tax-free* | Nil | Salaried employees |
| NPS Tier 1 | 8–12%* | Till 60 yrs | 60% tax-free | Low-Med | Retirement, extra ₹50K via 80CCD |
| LIC / Life Insurance | 4–6% | Policy term | Mostly exempt | Low | Life cover + tax saving |
| Home Loan Principal | Saves tax | 5-yr holding | N/A | N/A | Home buyers |
* ELSS and NPS returns are market-linked historical estimates, not guaranteed. EPF interest tax-free on contributions up to ₹2.5L/year.
How to Maximise Section 80C Benefits
The ₹1,50,000 ceiling under Section 80C is one of the most powerful tax-saving tools available to individual taxpayers under the Old Tax Regime. Here's how to make the most of it:
Step 1: Check Existing Auto-Deductions
EPF contribution (12% of basic salary) is automatically counted under 80C. Calculate how much EPF you contribute annually before making additional investments. If EPF alone crosses ₹1.5L, you may not need additional 80C investments.
Step 2: Use 80CCD(1B) for Extra ₹50,000
Section 80CCD(1B) allows an additional ₹50,000 deduction for NPS contributions over the 80C limit. This means total possible deduction = ₹1,50,000 (80C) + ₹50,000 (80CCD(1B)) = ₹2,00,000.
Section 80C vs New Regime — Key Decision
Section 80C is only available under the Old Tax Regime. If you are claiming 80C deductions of ₹1.5L, the tax saved depends on your tax bracket:
- 30% bracket: Tax saving = ₹1,50,000 × 30% × 1.04 (cess) = ₹46,800
- 20% bracket: Tax saving = ₹1,50,000 × 20% × 1.04 = ₹31,200
- 5% bracket: Tax saving = ₹1,50,000 × 5% × 1.04 = ₹7,800
Compare this benefit against the tax you save under New Regime to decide which is better for you. Use our New vs Old Tax Regime Calculator for exact comparison.
Frequently Asked Questions
Can I claim 80C if I invest in multiple instruments?
Yes. You can invest across multiple 80C instruments simultaneously — ELSS, PPF, LIC, NSC, EPF, etc. The combined deduction is capped at ₹1,50,000 per year. For example: EPF ₹60K + ELSS ₹60K + LIC ₹30K = ₹1.5L — all qualify.
Is 80C available in the New Tax Regime?
No. Section 80C and most other Chapter VIA deductions are NOT available under the New Tax Regime (FY 2020-21 onwards). However, employer's NPS contribution (80CCD(2)) is still allowed even in New Regime.
What is the 80C limit for HUF?
For a Hindu Undivided Family (HUF), the Section 80C deduction is also ₹1,50,000 per year, applicable on the HUF's own investments like ELSS, life insurance premiums for members, LIC, term deposits, etc. EPF is not applicable for HUFs.
Can spouse or children's 80C investments be claimed?
You can claim deduction for life insurance premiums paid for your spouse and dependent children under 80C. PPF contributions to your spouse's or minor children's accounts also qualify. However, if spouse has independent income, they should claim their own 80C separately.