What qualifies under Section 80C
| Investment / payment | Lock-in / note |
|---|---|
| Employee's EPF contribution | Deducted from salary automatically |
| PPF | 15 years; tax-free interest |
| ELSS mutual funds | 3 years — the shortest lock-in |
| Life insurance premium | Policy premium up to 10% of sum assured for full deduction |
| Home-loan principal repayment | Includes stamp duty and registration in the year paid |
| Tuition fees | For up to two children, full-time education in India |
| 5-year tax-saving bank FD | 5 years; interest taxable |
| NSC | 5 years |
| Sukanya Samriddhi Yojana | Girl child; tax-free maturity |
| Senior Citizens Savings Scheme | 5 years |
Other deductions to plan alongside
- 80CCD(1B): additional ₹50,000 for own NPS contribution (old regime)
- 80CCD(2): employer's NPS contribution — allowed in both regimes (up to 14% of salary in the new regime)
- 80D: health insurance — ₹25,000 (₹50,000 if senior), plus up to ₹25,000/₹50,000 for parents
- 24(b): home-loan interest up to ₹2 lakh on a self-occupied house (old regime)
Worked example: filling the ₹1.5 lakh limit
- 1EPF deducted from salary: ₹72,000.
- 2Life insurance premium: ₹25,000.
- 3Children's tuition fees: ₹40,000.
- 4Total so far: ₹1,37,000 — gap to the limit: ₹13,000, which can go into PPF or ELSS.
At the 30% slab, the full ₹1.5 lakh deduction saves about ₹46,800 including cess.
