Section 80C of the Income-tax Act lets you reduce your taxable income by up to ₹1.5 lakh a year through certain investments and payments. It is available only under the old tax regime.

What qualifies under 80C?

  • Life insurance premiums for yourself, your spouse and children.
  • ELSS mutual funds: equity funds with a 3-year lock-in, the shortest among 80C options.
  • PPF: a 15-year government-backed scheme with tax-free interest.
  • Employee Provident Fund (EPF) contributions.
  • Sukanya Samriddhi Yojana for a girl child.
  • National Savings Certificate (NSC) and 5-year tax-saver fixed deposits.
  • Home loan principal repayment and children's tuition fees (up to two children).

Choose for the goal, not just the tax

Your EPF contribution may already use part of the limit. For the rest, pick options that fit a real goal: PPF or SSY for safe long-term saving, ELSS for long-term growth, term insurance for protection.

Old regime or new?

The new regime has lower rates but does not allow 80C deductions. Whether 80C is worth it depends on your income and your total deductions. Compare both with our income tax calculator.

Plan early

Spread tax-saving investments through the year instead of rushing in March. Read about tax planning and Section 80D.

This article is for general education only and is not personal financial, tax or legal advice.

Tax rules change from year to year. Figures here reflect the rules at the time of writing; please verify the current rules or consult a tax professional before acting.