Section 80C Deductions (Now Section 123)
Save up to ₹46,800 in taxes (for taxpayers in the 30% bracket) under the old regime's Section 80C-equivalent deductions. Explore all eligible investments and expenses to maximize your tax savings.
Note: Under the Income-tax Act, 2025 (effective 1 April 2026, replacing the 1961 Act), "Section 80C" is renumbered as Section 123. The ₹1.5 lakh limit and eligible investments below are unchanged - only the section number is different, and it's still available only under the old tax regime. We use "80C" throughout this page since that's the term most people still search for and recognize.
Section 80C Key Points
₹1.5 Lakh
Maximum Deduction
₹46,800
Max Tax Saved (30% slab)
10+
Investment Options
All Section 80C Investment Options
| Investment | Limit | Expected Returns | Lock-in | Risk |
|---|---|---|---|---|
| Public Provident Fund (PPF) | Up to ₹1.5L | 7-8% | 15 years | Low |
| ELSS Mutual Funds | Up to ₹1.5L | 12-15% | 3 years | High |
| National Savings Certificate (NSC) | Up to ₹1.5L | 7-8% | 5 years | Low |
| Tax-Saving Fixed Deposit | Up to ₹1.5L | 6-7% | 5 years | Low |
| Employees' Provident Fund (EPF) | 12% of salary | 8-9% | Till retirement | Low |
| Life Insurance Premium | Up to ₹1.5L | N/A | Policy term | N/A |
| NPS Tier 1 (Combined with 80CCD) | Up to ₹1.5L | 9-11% | Till 60 years | Moderate |
| Sukanya Samriddhi Yojana | Up to ₹1.5L | 8% | Till girl turns 21 | Low |
| Children's Tuition Fees | Up to ₹1.5L | N/A | None | N/A |
| Principal Repayment of Home Loan | Up to ₹1.5L | N/A | None | N/A |
Recommended 80C Strategy
- PPF: ₹1.5 lakh (safety + returns)
- EPF: Continue contributions
- Tax-saving FD: For additional safety
- PPF: ₹75,000 (stability)
- ELSS: ₹75,000 (growth)
- EPF: Continue + Life Insurance
- ELSS: ₹1.5 lakh (max returns)
- NPS: Additional ₹50K under 80CCD(1B)
- Short 3-year lock-in for ELSS
Frequently Asked Questions
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Calculate Your Tax Savings
Use our income tax calculator to see how much you can save with Section 80C investments.