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.
Hi,
Is Kishan Vikas Patra exempt from income tax ?
Please advise so that i can invest.
Regards,
Tushar
Interest earned from Kisan Vikas Patra (KVP) is fully taxable.
Is Education Loan repayment exempted from income tax? If yes, is it on the principal amount or the repayment amount with interest?
Kindly advice.
Shraddha, on education loan, only interest portin is considered for income tax deduction
Very well explained. This is the one that i was looking for most of the time. I found in this article if i want to save my tax then i must invest money in different schemes available under Section 80C. Thanks for sharing good information.
Till previous year the women-tax payers were allowed a higher
tax exemption limit than the male tax payers. Whether such a concession is available for the FY 2012-13? Also inform any
other concession is available to women tax payers for the
FY 2012-2013.
There is no difference in tax exemption limit. Both women and men have same exemption limit.
bank intrest is taxable or not for fincial year 2012-2013 and 2013-2014 .whats limit
Bank interest received in saving account upto Rs 10,000 is tax free for year 2012-2013 and 2013-2014.
Shall I apply my son’s medical expenses like vaccens etc?
Medical Expenses are not allowed under section 80C
whqt is the maximum Tution fee of 2 children for savings under Sec 80C
What is the maximum amount for saving under 80C.
PPF is neccessary or not for max limit.
Maximum Limit for year 2014-2015 is now Rs 1.5 lacs
Section 80C. What are the maximum Amount 2014-15 and Education cess How much Percentage 2014-15
Maximum limit under section 80c from financial year 2014-15 is Rs 1.5 lacs.
I am a private it sector employee , i mailed my accountant how much saving i can do in 14-15 fin yr under section 80c. He replied as 1lakh . what shokld i do.
Limit has now increased to Rs 1.5 lacs under section 80C.
you didn’t mention F.Y 2014-15.
HE THINKS YOU TALKING ABT
ASSESMENT YEAR 2014-15.
Rupees two thousand is also applicable under section 87A during the year 2014-15
Hello Sir,
Please tell me what is the batter choice ‘National Savings Certificates (NSC)’ vs Bank FD because both are giving 8.5% interest rate.
Waiting for your suggestion.
Thanks.
Both NSC and Bank FD are equal. Interest received from both is taxable. You can invest in any of these. However in terms of operating this saving instrument I would recommend bank fixed deposit. since withdrawl and operation of bank FD can be done online as compared to bank Fixed deposit.
Is this investment limit of 1.5 lakhs same for senior citizens too?
Sir, 80 C limit of rs 1.5 lacs is same for senior Citizen. There is no diffential in amount for senior citizens under section 80C.