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Income Tax · Tax Planning·TaxGyani Expert Guide

Section 80C Deductions: Complete List of Tax-Saving Investments for 2025–26

PPF, ELSS, LIC, NSC and 15+ more instruments with limits, lock-in periods, returns and conditions — everything to maximise your ₹1.5 lakh deduction.

✍️ CA Rajesh Kumar
📅 14 March 2026
⏱ 9 min read
🇮🇳 India
In this article
  1. 80C Overview
  2. Investment Instruments
  3. Additional Deductions
  4. FAQs

Section 80C — The ₹1.5 Lakh Tax-Saving Umbrella

Section 80C of the Income Tax Act, 1961 allows individuals and HUFs to claim a deduction of up to ₹1.5 lakh per financial year from their gross total income by investing in specified instruments. This is only available under the Old Tax Regime.

Important for AY 2026-27: Section 80C deductions are NOT available under the New Tax Regime (Section 115BAC). If you wish to claim 80C benefits, you must explicitly opt for the Old Tax Regime while filing your ITR.

80C Investment Instruments — Complete List

InstrumentLock-inReturnsRisk
PPF (Public Provident Fund)15 years7.1% p.a. (tax-free)Very Low
ELSS (Equity Linked Savings Scheme)3 yearsMarket-linked (12–15% hist.)Moderate-High
EPF (Employee Provident Fund)Till retirement8.25% p.a. (tax-free)Very Low
NSC (National Savings Certificate)5 years7.7% p.a. (taxable)Very Low
5-Year Tax Saver FD5 years6.5–7.5% p.a. (taxable)Very Low
Life Insurance Premium (LIC)Policy term4–6% p.a.Low
Tuition Fees (2 children)N/AN/AN/A
Home Loan Principal5 yearsN/AN/A
SCSS (Senior Citizens Savings Scheme)5 years8.2% p.a. (taxable)Very Low
Sukanya Samriddhi YojanaTill girl is 218.2% p.a. (tax-free)Very Low
Best combination for most salaried employees: EPF contribution is automatic (₹~60K), top up with PPF (₹~50K) + ELSS (₹~40K) to max out the ₹1.5L limit with a mix of safety and growth.

Beyond Section 80C — Additional Deductions

80D Health insurance premium — up to ₹25,000 self/family; ₹50,000 for senior citizen parents
80CCD(1B) NPS self-contribution — additional ₹50,000 over and above 80C limit
80CCD(2) Employer NPS contribution — up to 14% of basic salary (also available in New Regime)
80E Education loan interest — unlimited deduction for 8 years
80G Donations to approved charities — 50%–100% deduction
24(b) Home loan interest — up to ₹2 lakh for self-occupied property

Frequently Asked Questions

Can I claim 80C even if my EPF contribution already exceeds ₹1.5 lakh?
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No. The total 80C deduction is capped at ₹1.5 lakh regardless of how many instruments you invest in. If your EPF alone exceeds this, additional 80C investments will not give you extra deduction — but 80CCD(1B) for NPS gives you an additional ₹50,000.
Is ELSS better than PPF for tax saving?
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ELSS has a shorter lock-in (3 years vs 15 years) and historically higher returns (equity-linked), but comes with market risk. PPF gives guaranteed, tax-free returns with sovereign backing. The right choice depends on your risk appetite and investment horizon.
Can I claim tuition fees for my spouse under 80C?
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No. Section 80C allows deduction for tuition fees paid for full-time education of your own children only (up to 2 children). Spouse fees do not qualify.
Is the maturity amount of PPF taxable?
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No. PPF is an EEE (Exempt-Exempt-Exempt) instrument — the contribution, interest, and maturity amount are all tax-free. This makes it one of the most tax-efficient savings instruments available.