# Section 80C Deduction Planner

> Section 80C lets you deduct up to ₹1.5 lakh a year for specified investments and payments — EPF, PPF, ELSS, life insurance, home-loan principal, tuition fees and more — but only under the old tax regime. NPS gives an extra ₹50,000 under 80CCD(1B), and health insurance has its own limit under 80D.

Interactive calculator: https://www.industax.com/calculators/section-80c-planner

- **80C limit:** ₹1,50,000
- **Extra NPS (80CCD(1B)):** ₹50,000
- **Regime:** Old regime only

## 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

1. EPF deducted from salary: ₹72,000.
2. Life insurance premium: ₹25,000.
3. Children's tuition fees: ₹40,000.
4. Total so far: ₹1,37,000 — gap to the limit: ₹13,000, which can go into PPF or ELSS.

**Result:** At the 30% slab, the full ₹1.5 lakh deduction saves about ₹46,800 including cess.

## FAQs

### Can I claim 80C in the new tax regime?

No. Section 80C, 80D and 80CCD(1B) are available only in the old regime. In the new regime only a few deductions remain, such as the employer's NPS contribution under 80CCD(2).

### Is home-loan interest part of the ₹1.5 lakh?

No. Only the principal repayment counts under 80C. Interest on a self-occupied home is deductible separately under Section 24(b), up to ₹2 lakh, in the old regime.

### Should I invest just to save tax?

Only if the investment suits you anyway. First compare regimes — if the new regime is better for you, 80C investments don't save any tax.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.