Section 80C Deductions: Complete List & How to Claim in FY 2025-26

Section 80C of the Income Tax Act is the most popular tax-saving provision in India. It allows individuals and HUFs to claim deductions up to ₹1,50,000 per financial year on specified investments and expenses. This guide covers every eligible instrument, documents needed, and how to claim in your ITR.

Important: Section 80C deductions are available only under the Old Tax Regime. Under the New Tax Regime (default from FY 2023-24), Section 80C deductions are not available.

Section 80C Deduction Limit

Complete List of Section 80C Investments & Expenses

1. Public Provident Fund (PPF)

• Lock-in period: 15 years
• Interest rate: 7.1% (set by government, reviewed quarterly)
• Min/Max investment: ₹500 / ₹1,50,000 per year
• Tax on returns: Interest and maturity are fully tax-free (EEE status)
• Where to open: Post office, SBI, or other scheduled banks

2. Equity Linked Savings Scheme (ELSS)

• Lock-in period: 3 years (shortest among 80C options)
• Returns: Market-linked (historically 10-15% CAGR)
• Tax on returns: LTCG above ₹1.25 lakh taxed at 12.5%
• Where to invest: Any mutual fund house via AMC website or apps

3. Life Insurance Premium (LIC / Private)

• Eligible amount: Premium paid for self, spouse, and children
• Condition: Premium should not exceed 10% of sum assured (for policies after 01-04-2012)
• Tax on maturity: Tax-free under Section 10(10D) if premium ≤ 10% of sum assured

4. National Savings Certificate (NSC)

• Lock-in period: 5 years
• Interest rate: 7.7% (compounded annually, paid at maturity)
• Tax on returns: Interest is taxable but reinvested interest qualifies for 80C in subsequent years
• Where to buy: Post offices

5. Sukanya Samriddhi Yojana (SSY)

• Eligibility: Girl child below 10 years (max 2 accounts for 2 daughters)
• Lock-in: Until girl turns 21
• Interest rate: 8.2%
• Tax on returns: Fully tax-free (EEE status)
• Min/Max: ₹250 / ₹1,50,000 per year

6. Tax-Saving Fixed Deposit

• Lock-in period: 5 years
• Interest rate: 6.5-7.5% (varies by bank)
• Tax on returns: Interest is fully taxable
• No premature withdrawal allowed
• Where to open: Any scheduled bank

7. Employee Provident Fund (EPF)

• Employee contribution (12% of basic) qualifies under 80C
• Employer contribution is exempt separately
• Tax on returns: Interest tax-free up to ₹2.5 lakh contribution per year

8. Home Loan Principal Repayment

• Eligible amount: Principal portion of EMI for a residential property
• Condition: Property should not be sold within 5 years of possession
• Includes: Stamp duty and registration charges (in the year of payment)

9. Children's Tuition Fees

• Eligible: Tuition fees paid for up to 2 children
• Covers: Full-time education at any school, college, or university in India
• Excludes: Development fees, donation, transport, hostel, private coaching

10. Senior Citizens' Savings Scheme (SCSS)

• Eligibility: Age 60+ (or 55+ for retired defence personnel)
• Lock-in: 5 years (extendable by 3 years)
• Interest rate: 8.2%
• Tax on returns: Interest is taxable

11. National Pension System (NPS) — Section 80CCD(1)

• Employee contribution up to 10% of salary qualifies under 80C limit
• Additional ₹50,000 deduction under Section 80CCD(1B) — over and above ₹1.5 lakh
• See our NPS guide for details

12. Unit Linked Insurance Plan (ULIP)

• Lock-in: 5 years
• Tax benefit: Premium qualifies under 80C
• Condition: Annual premium ≤ ₹2.5 lakh for tax-free maturity

Quick Comparison Table

Documents Needed for 80C Claims

How to Claim Section 80C in Your ITR

Step 1: Calculate Total 80C Investments

Add up all qualifying investments and expenses. Remember the combined limit is ₹1,50,000.

Step 2: File ITR Under Old Tax Regime

You must select the Old Tax Regime to claim 80C. In the ITR form:

1. Log in to Income Tax e-Filing portal
2. Navigate to Schedule VI-A (Deductions under Chapter VI-A)
3. Under Section 80C, enter the total qualifying amount (max ₹1,50,000)
4. Break down individual investments if the form requires

Step 3: Keep Documents Ready

You don't need to upload documents while filing, but keep them for 6 years in case of scrutiny.

Tax Planning Tips

1. Start investing early in the year — don't rush in January-March; you miss out on returns
2. Diversify across instruments — combine PPF (safe) + ELSS (growth) + insurance (protection)
3. Check EPF contribution first — your EPF already counts towards 80C; invest only the remaining gap
4. Don't buy insurance just for tax saving — term insurance is cheaper; invest the difference in ELSS/PPF
5. Use NPS for extra ₹50,000 — Section 80CCD(1B) gives additional deduction beyond ₹1.5 lakh

Frequently Asked Questions

Can I claim more than ₹1.5 lakh under Section 80C?

No. The maximum deduction under Sections 80C, 80CCC, and 80CCD(1) combined is ₹1,50,000. However, Section 80CCD(1B) gives an additional ₹50,000 for NPS contributions.

Is Section 80C available under the New Tax Regime?

No. Section 80C deductions are available only under the Old Tax Regime. Compare both regimes in our Old vs New Tax Regime guide.

Can I claim tuition fees for coaching classes?

No. Only tuition fees paid to a school, college, or university for full-time education qualify. Coaching classes, private tuitions, and development fees are not eligible.

Does home loan stamp duty qualify under 80C?

Yes. Stamp duty and registration charges paid for a residential property qualify under Section 80C in the year of payment.

Can both husband and wife claim 80C on the same investment?

No. The investment must be in the name of the person claiming the deduction. However, both can make separate investments and claim individually.

What if I withdraw my ELSS before 3 years?

You cannot withdraw ELSS units before the 3-year lock-in period. After 3 years, redemption is allowed and LTCG above ₹1.25 lakh is taxed at 12.5%.

Is PPF better than ELSS for tax saving?

It depends on your risk appetite. PPF offers guaranteed, tax-free returns but has a 15-year lock-in. ELSS offers potentially higher returns with only 3-year lock-in but carries market risk.

This guide is for informational purposes only and is not affiliated with the Income Tax Department of India. Verify details on the official Income Tax portal. Tax laws may change — consult a qualified CA for personalized advice.