Section 80C
Income Tax Act section allowing up to ₹1.5 lakh deduction from taxable income across PPF, ELSS, EPF, NSC, life insurance, home loan principal, and more.
Definition
Section 80C of the Income Tax Act 1961 allows individuals and HUFs to deduct up to ₹1.5 lakh per financial year from their taxable income by investing in qualifying instruments. The deduction is available only under the old tax regime — the new regime does not allow 80C benefits.
Qualifying instruments include: PPF, EPF (automatic from salary), ELSS mutual funds, NSC, life insurance premium, home loan principal repayment, kid's tuition fees (max 2 children), Sukanya Samriddhi Yojana, NPS Tier 1 (up to ₹1.5L within 80C; additional ₹50K under 80CCD(1B)), 5-year tax-saver FD, and a few others. All share the single ₹1.5L cap.
Tax saved at the 30% slab + 4% cess = ₹46,800/year for a fully utilised ₹1.5L. At 20%: ₹31,200. At 5%: ₹7,800.
Example
₹1.5L invested across PPF (₹50K) + ELSS (₹50K) + EPF (₹50K already deducted) at 30% slab → saves ₹46,800 in tax per year.
Calculators that use this
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