Section 80C is India's most popular tax-saving provision — it allows you to claim a deduction of up to ₹1,50,000 per year, which can save you up to ₹46,800 in tax (at 30% tax rate + 4% cess). But only under the Old Tax Regime. Here's everything you need to know.
Maximum Tax Saving under 80C: ₹1,50,000 × 30% tax rate × 1.04 cess = ₹46,800 tax saved per year
Complete List of Section 80C Deductions
| Investment / Expense | Limit | Lock-in |
|---|---|---|
| PPF (Public Provident Fund) | Up to ₹1.5 lakh/year | 15 years |
| ELSS Mutual Funds | No upper limit (deduction up to ₹1.5L) | 3 years |
| NSC (National Savings Certificate) | Up to ₹1.5 lakh | 5 years |
| 5-year Tax Saving FD (banks) | Up to ₹1.5 lakh | 5 years |
| Life Insurance Premium (LIC/others) | Up to ₹1.5 lakh | 2-3 years premium |
| EPF (Employee Provident Fund) | Employee contribution | Till retirement |
| Home Loan Principal Repayment | Up to ₹1.5 lakh | Till loan ends |
| Sukanya Samriddhi Yojana (SSY) | Up to ₹1.5 lakh | 21 years |
| Children's Tuition Fees (max 2 children) | Actual fees paid | None |
| Senior Citizens Savings Scheme (SCSS) | Up to ₹1.5 lakh | 5 years |
Best 80C Investments: Comparison
| Option | Return | Risk | Best For |
|---|---|---|---|
| ELSS Mutual Funds | 12-15% (market-linked) | Medium | Young investors, wealth creation |
| PPF | 7.1% (tax-free) | Zero | Conservative investors, retirement |
| NSC | 7.7% (taxable) | Zero | Short-term, risk-averse |
| 5-Year FD | 6.5-7.5% | Zero | Seniors, guaranteed return seekers |
| SSY | 8.2% (tax-free) | Zero | Parents of girl child below 10 |
Other Tax Deductions Beyond 80C
- Section 80D — Health insurance premium: up to ₹25,000 (₹50,000 for seniors)
- Section 80E — Education loan interest: full amount, no limit
- Section 80G — Donations to eligible charities: 50-100% deduction
- Section 24b — Home loan interest: up to ₹2 lakh (self-occupied)
- Section 80CCD(1B) — NPS extra contribution: ₹50,000 over 80C limit
- HRA Exemption — Rent receipts from employer (salaried only)
How to Claim 80C in ITR
- Choose Old Tax Regime when filing ITR (must opt explicitly)
- Collect investment proofs — PPF passbook, ELSS statements, LIC receipts, FD certificates
- Mention investments in Schedule VI-A of your ITR form
- Make sure total claimed ≤ ₹1,50,000 (all 80C investments combined)
- Submit ITR with supporting documents if asked during scrutiny
💡 KyaTax Tip: Submit your investment declarations to your employer by February to reduce TDS. If you forget, claim them directly in your ITR and get a refund of excess TDS deducted.