Section 80C of the Income Tax Act allows taxpayers to claim deductions on certain investments and expenses to reduce their taxable income.

Section 80C deductions allow taxpayers to save up to ₹1.5 lakh in taxes through investments like PPF, ELSS, EPF and life insurance.

This section is one of the most commonly used tax saving provisions in India, especially for salaried individuals and families looking to lower their tax liability.

Under Section 80C, taxpayers can claim deductions up to ₹1,50,000 per financial year by investing in approved instruments or paying eligible expenses.

Understanding the full list of deductions under Section 80C can help taxpayers plan their finances and maximize tax savings before filing their income tax return.

What is Section 80C?

Section 80C is a tax deduction provision that allows individuals and Hindu Undivided Families (HUFs) to reduce their taxable income by investing in specified financial instruments.

The maximum deduction allowed under Section 80C is ₹1.5 lakh per year.

For example:

If your taxable income is ₹8,00,000 and you invest ₹1,50,000 in eligible 80C instruments, your taxable income reduces to ₹6,50,000.

This can significantly reduce the total tax payable.

Section 80C Deduction Limit

Taxpayers opting for the new tax regime generally cannot claim Section 80C deductions.

Complete List of Section 80C Deductions

Below are the most common investments and expenses eligible for deduction under Section 80C.

1️⃣ Public Provident Fund (PPF)

PPF is one of the most popular long-term tax saving investments.

Benefits include:

• tax deduction under Section 80C

• tax-free interest

• government-backed security

2️⃣ Employees Provident Fund (EPF)

Salaried employees automatically contribute to EPF through their employer.

The employee contribution qualifies for Section 80C deduction.

3️⃣ Equity Linked Saving Scheme (ELSS)

ELSS mutual funds are popular among investors because they offer:

• tax deduction under 80C

• potential for higher returns

• shortest lock-in period of 3 years

4️⃣ Life Insurance Premium

Premium paid for life insurance policies for self, spouse, or children qualifies for deduction under Section 80C.

5️⃣ Home Loan Principal Repayment

The principal repayment of a housing loan is eligible for deduction under Section 80C.

However, the property should not be sold within 5 years of possession.

6️⃣ National Savings Certificate (NSC)

NSC is a government-backed savings scheme that offers:

• fixed returns

• tax deduction under Section 80C

7️⃣ Sukanya Samriddhi Yojana (SSY)

This scheme is designed for the girl child and offers:

• high interest rates

• tax benefits under Section 80C

8️⃣ 5-Year Tax Saving Fixed Deposit

Many banks offer 5-year tax saving fixed deposits that qualify for deduction under Section 80C.

9️⃣ Tuition Fees for Children

Parents can claim deduction for tuition fees paid for up to two children.

However, only tuition fees qualify, not other school charges.

Best Section 80C Investments for Tax Saving

Choosing the right investment depends on your financial goals.

For long-term tax planning, many investors prefer PPF or ELSS.

Section 80C Under Old vs New Tax Regime

Taxpayers opting for the new tax regime cannot claim most deductions including Section 80C.

Therefore, individuals should compare both regimes before filing their return.

Need Help With Tax Planning?

If you need help with tax planning, deductions, or income tax return filing, you can consult CA Shiwali.

📞 Phone: 9266032777
🌐 Website: https://cashiwali.com

You may also find these tools useful on CA Shiwali’s site:

• Income Tax Calculator (AY 2026-27)

• HRA Calculator India

• Take-Home Salary Calculator

• Advance Tax Calculator

• Compare the old vs new tax regime

These tools help taxpayers estimate their tax liability before filing their return.

Frequently Asked Questions

What is the maximum deduction under Section 80C?

The maximum deduction allowed under Section 80C is ₹1.5 lakh per financial year.

Can I claim Section 80C under the new tax regime?

No. Most deductions under Section 80C are not available in the new tax regime.

Is EPF included in Section 80C?

Yes. Employee contributions to the Employees Provident Fund (EPF) qualify for deduction under Section 80C.

Can tuition fees be claimed under Section 80C?

Yes. Tuition fees paid for up to two children are eligible for deduction under Section 80C.