Section 80C Deductions Explained
What qualifies under Section 80C, how the ₹1.5 lakh limit works, and how to choose between the options.
Section 80C of the Income Tax Act lets you deduct up to ₹1.5 lakh a year from your taxable income if you opt for the old tax regime. It is not available in the new regime.
What qualifies
- Employees' Provident Fund (EPF/VPF): your own contribution counts.
- Public Provident Fund: up to ₹1.5 lakh a year. See the PPF calculator.
- ELSS mutual funds: equity funds with a 3-year lock-in, the shortest among 80C options.
- Life insurance premiums: subject to conditions on premium versus sum assured.
- Home-loan principal repayment and stamp duty on the first year of purchase.
- Tax-saving fixed deposits: 5-year lock-in; interest is taxable.
- Children's tuition fees: for up to two children, at a school or college in India.
- National Savings Certificate and Sukanya Samriddhi Yojana.
The limit is a combined cap
All of these together cannot exceed ₹1.5 lakh. If your EPF contribution and home-loan principal already use up the limit, adding more 80C products gives no extra tax benefit.
Beyond 80C
Separate deductions exist for health insurance (80D), extra NPS contributions of ₹50,000 (80CCD(1B)), and home-loan interest. See the NPS calculator and HRA calculator.
How to choose
- If you need safety, PPF and EPF give stable, tax-free returns.
- If you can accept market risk and have a long horizon, ELSS offers growth with a short lock-in.
- Avoid buying insurance mainly for the deduction; buy it for cover.
Limits and eligibility change with each Budget. Confirm with the Income Tax Department.
Frequently asked questions
Is Section 80C available in the new regime?
No. Section 80C is available only in the old tax regime.
Which 80C option has the shortest lock-in?
ELSS mutual funds, with a 3-year lock-in.
More guides
Calculators
Last reviewed: October 2026. General education, not financial advice.