Section 80C Tax Saving Calculator

Section 80C of the Income Tax Act allows you to claim a deduction of up to ₹1.5 lakh per year on investments and expenses in specified instruments. Major eligible options include:

• ELSS (Equity Linked Savings Scheme) — mutual funds
• EPF / VPF contributions
• PPF contributions
• Life insurance premium (LIC)
• NSC (National Savings Certificate)
• Sukanya Samriddhi Yojana
• Home loan principal repayment
• Children's tuition fees (up to 2 children)
• 5-year tax-saving bank FDs

No. Section 80C deductions are not available if you opt for the new tax regime. The new regime offers lower slab rates in exchange for giving up most exemptions and deductions. If your 80C investments (and other deductions) are significant, the old regime may give you a lower net tax liability. Compare both regimes using the Income Tax Calculator.

The best 80C option depends on your goals:

• ELSS: Highest return potential (market-linked), shortest lock-in (3 years), but comes with equity risk.
• PPF: Government-guaranteed, EEE tax status (exempt at all stages), 15-year lock-in.
• EPF: Mandatory for salaried employees, employer also contributes, stable returns.

Most financial planners suggest maximising EPF first, then ELSS for growth, with PPF for guaranteed long-term savings.

Yes. Beyond the 80C limit of ₹1.5 lakh, you can invest in NPS Tier-1 and claim an additional deduction of up to ₹50,000 under Section 80CCD(1B) — exclusively for NPS, over and above the 80C ceiling. Combined with 80C, this allows a total deduction of up to ₹2 lakh on tax-saving investments.