Last Updated: June 2026 — FY 2025-26 (AY 2026-27)
Section 80C is the most popular tax-saving provision in India, allowing deductions up to Rs. 1,50,000 per year. Note: Section 80C deductions are available only under the Old Tax Regime.
Section 80C Eligible Investments – FY 2025-26
| Investment / Expense | Maximum Deduction |
|---|---|
| Employee Provident Fund (EPF) | Actual contribution |
| Public Provident Fund (PPF) | Up to Rs. 1,50,000/year |
| ELSS Mutual Funds (3-year lock-in) | Actual investment |
| National Savings Certificate (NSC) | Actual investment |
| 5-Year Tax Saver FD | Actual investment |
| Sukanya Samriddhi Yojana (SSY) | Up to Rs. 1,50,000/year |
| Life Insurance Premium (LIC etc.) | Actual premium paid |
| Home Loan Principal Repayment | Actual repayment |
| Children’s Tuition Fees (2 children) | Actual fees paid |
| Senior Citizens Savings Scheme (SCSS) | Actual investment |
| National Pension System (NPS) – 80CCD(1) | Up to 10% of salary |
Additional Deductions Beyond Rs. 1.5 Lakh
- Section 80CCD(1B): Additional Rs. 50,000 for NPS contributions (over and above 80C limit)
- Section 80CCD(2): Employer’s NPS contribution (no limit, not counted in 80C cap)
Best 80C Investments for FY 2025-26
- ELSS Funds — Shortest lock-in (3 years), market-linked returns, best for wealth creation
- PPF — Guaranteed returns (~7.1% p.a.), fully tax-free maturity, 15-year lock-in
- EPF — Already deducted by employer, ~8.25% interest, retirement-focused
- SSY — For girl child education/marriage, ~8.2% interest, fully tax-free
- NPS (80CCD1B) — Extra Rs. 50,000 deduction beyond 80C, pension on retirement
Remember: 80C is only available under the Old Tax Regime. Under the New Regime (default for FY 2025-26), these deductions cannot be claimed — but zero tax up to Rs. 12.75 lakh makes the new regime attractive for many.