Tax Savings
10 min read
January 20, 2025
Section 80C Deductions: Complete List to Save ₹1.5 Lakh Tax
Comprehensive guide to all Section 80C investments and deductions
Save Up to ₹46,800 in Taxes
Section 80C is the most popular tax-saving provision, allowing deductions up to ₹1.5 lakh. At the highest tax bracket (31%), you can save ₹46,800 annually under the old tax regime.
Section 80C: Overview
Section 80C allows a maximum deduction of ₹1,50,000 from your taxable income in the old tax regime. This single section covers multiple investment options and expenses.
The deduction is available only under the old tax regime. The new tax regime does not allow Section 80C deductions in exchange for lower tax rates.
Combined Limit: Sections 80C, 80CCC (pension), and 80CCD(1) (NPS) share a combined limit of ₹1.5 lakh. However, 80CCD(1B) provides an additional ₹50,000 deduction exclusively for NPS.
Complete List of 80C Investments
All these investments qualify for Section 80C deduction, with a combined maximum limit of ₹1.5 lakh
ELSS Mutual Funds
Equity Linked Savings Scheme
Lock-in Period3 years (shortest)
ReturnsMarket-linked
Risk
High
PPF (Public Provident Fund)
Government-backed savings
Lock-in Period15 years
Returns7.1% p.a.
Risk
Zero
Life Insurance Premium
Term/Endowment/ULIP
Lock-in PeriodPolicy term
ReturnsVaries by type
BenefitTax-free maturity
NSC
National Savings Certificate
Lock-in Period5 years
Returns7.7% p.a.
Risk
Zero
Tax Saver FD
5-year Fixed Deposit
Lock-in Period5 years
Returns6-7% p.a.
Risk
Low
Sukanya Samriddhi Yojana
For girl child under 10
Lock-in PeriodUntil age 21
Returns8.2% p.a.
Risk
Zero
Home Loan Principal
EMI principal component
Eligible AmountPrincipal only
InterestUnder Sec 24(b)
Max Deduction₹1.5L (80C)
Children's Tuition Fees
Full-time education
EligibleMax 2 children
CoversTuition fees only
Not AllowedDonation/Capitation
Quick Comparison: Which is Best for You?
Choose based on your financial goals, risk appetite, and liquidity needs
| Investment | Best For | Liquidity | Risk |
|---|---|---|---|
ELSS | High returns seekers, young investors | 3 years | High |
PPF | Safe, long-term retirement planning | 15 years | Zero |
Life Insurance | Family protection + tax savings | Policy term | Low-Med |
NSC | Fixed returns, safety-conscious investors | 5 years | Zero |
Tax Saver FD | Conservative, guaranteed returns | 5 years | Low |
Sukanya Samriddhi | Parents of girl child, best returns | Until age 21 | Zero |
Pro Tip
Diversify across multiple 80C options based on your goals. For example: ELSS for growth + PPF for safety + Life Insurance for protection = Balanced portfolio.
Calculate Your 80C Tax Savings
See exactly how much tax you can save with different 80C investments
Important Points to Remember
- Section 80C deductions are available ONLY under the old tax regime
- Maximum combined limit of ₹1.5 lakh for 80C + 80CCC + 80CCD(1)
- Additional ₹50,000 deduction available under 80CCD(1B) exclusively for NPS
- Keep all investment proofs ready for tax filing
- Choose investments based on your financial goals, not just tax savings