Section 80C Deductions — Complete List for FY 2025-26 (₹1.5 Lakh Limit) | RushTax Blog

Section 80C is the most popular tax-saving provision in India. It allows you to reduce your taxable income by up to ₹1,50,000 per financial year by investing in or paying for specific instruments. Here is the complete, updated list for FY 2025-26.

Key Facts About Section 80C

Maximum deduction: ₹1,50,000 per financial year
Available in: Old tax regime only (not available in new regime)
Who can claim: Individuals and HUFs
Combined limit: 80C + 80CCC + 80CCD(1) together cannot exceed ₹1.5L

Complete List of 80C Eligible Investments

1. Life Insurance Premium (LIC / Any Insurer)

Premium paid for life insurance policy on self, spouse, or children
Policy must be in force (not lapsed)
For policies issued after April 2012: premium must not exceed 10% of sum assured

2. Public Provident Fund (PPF)

Minimum ₹500/year, maximum ₹1,50,000/year
15-year lock-in (partial withdrawal from year 7)
Interest is tax-free — one of the best tax-saving instruments

3. Employee Provident Fund (EPF)

Your contribution (12% of basic salary) qualifies under 80C
Employer contribution does NOT qualify
Interest is tax-free if withdrawn after 5 years of continuous service

4. ELSS Mutual Funds (Equity Linked Savings Scheme)

3-year lock-in (shortest among 80C options)
Market-linked returns — historically 12–15% CAGR
LTCG above ₹1.25L taxed at 12.5% (Section 112A)
Best option if you want growth + tax saving

5. National Savings Certificate (NSC)

5-year lock-in
Interest is taxable but reinvested interest also qualifies for 80C
Available at post offices

6. 5-Year Tax Saving Fixed Deposit

Available at banks and post offices
5-year lock-in, no premature withdrawal
Interest is taxable

7. Sukanya Samriddhi Yojana (SSY)

For girl child below 10 years
Maximum ₹1,50,000/year
Interest is tax-free, maturity amount is tax-free
Best option for parents of daughters

8. Senior Citizens Savings Scheme (SCSS)

For individuals above 60 years
Maximum ₹30 lakh
Interest is taxable but qualifies for 80C

9. Home Loan Principal Repayment

Principal component of EMI qualifies under 80C
Property must not be sold within 5 years of possession
Stamp duty and registration charges also qualify (in the year of payment)

10. Tuition Fees

Fees paid for full-time education of up to 2 children
Only tuition fees — not development fees, donations, or hostel charges
Any school, college, or university in India

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

Employee contribution to NPS qualifies under 80C (within ₹1.5L limit)
Additional ₹50,000 available under 80CCD(1B) — over and above ₹1.5L limit

12. Unit Linked Insurance Plans (ULIPs)

Premium qualifies under 80C
Maturity proceeds are tax-free if premium ≤ 10% of sum assured

What Does NOT Qualify Under 80C

Mutual funds other than ELSS
Recurring deposits (RD)
Gold or gold bonds (except Sovereign Gold Bonds — separate provision)
Health insurance premium (that's Section 80D)
Donations (that's Section 80G)

How to Maximise Your 80C

Priority	Instrument	Why
1st	EPF (auto-deducted)	Already happening — check your salary slip
2nd	PPF	Safe, tax-free interest, long-term wealth
3rd	ELSS	Best returns, shortest lock-in
4th	Home loan principal	If you have a home loan
5th	LIC / Term insurance	Only if you need life cover

Tip: Most salaried employees already have EPF deductions. Check your salary slip — if EPF is ₹1L+, you may already be close to the ₹1.5L limit.

80C in New Regime vs Old Regime

Section 80C is not available in the new tax regime. If you choose the new regime, none of these deductions apply. The new regime offers lower tax rates but no deductions.

Use the free ITR Tax Calculator to compare your tax under both regimes with and without 80C deductions.

Frequently Asked Questions

Can I claim 80C for investments made in April 2026 for FY 2025-26?

No. 80C investments must be made between April 1, 2025 and March 31, 2026 to qualify for FY 2025-26. Investments made in April 2026 qualify for FY 2026-27.

Is PPF interest taxable?

No. PPF interest is completely tax-free under Section 10(11). It is one of the few EEE (Exempt-Exempt-Exempt) instruments — investment, interest, and maturity are all tax-free.

Can I claim 80C for my spouse's LIC premium?

Yes. You can claim 80C for life insurance premiums paid for yourself, your spouse, and your children.

What is the 80C limit for FY 2025-26?

₹1,50,000. This limit has not changed in Budget 2026.

Can I claim 80C in the new tax regime?

No. Section 80C deductions are available only under the old tax regime.

Need help calculating your 80C deductions and filing your ITR? Message me on WhatsApp — I'll calculate both regimes and recommend the one that saves more.