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Tax Saving Guide

Section 80C Deductions (Now Section 123)

Save up to ₹46,800 in taxes (for taxpayers in the 30% bracket) under the old regime's Section 80C-equivalent deductions. Explore all eligible investments and expenses to maximize your tax savings.

Note: Under the Income-tax Act, 2025 (effective 1 April 2026, replacing the 1961 Act), "Section 80C" is renumbered as Section 123. The ₹1.5 lakh limit and eligible investments below are unchanged - only the section number is different, and it's still available only under the old tax regime. We use "80C" throughout this page since that's the term most people still search for and recognize.

Section 80C Key Points

₹1.5 Lakh

Maximum Deduction

₹46,800

Max Tax Saved (30% slab)

10+

Investment Options

All Section 80C Investment Options

InvestmentLimitExpected ReturnsLock-inRisk
Public Provident Fund (PPF)Up to ₹1.5L7-8%15 yearsLow
ELSS Mutual FundsUp to ₹1.5L12-15%3 yearsHigh
National Savings Certificate (NSC)Up to ₹1.5L7-8%5 yearsLow
Tax-Saving Fixed DepositUp to ₹1.5L6-7%5 yearsLow
Employees' Provident Fund (EPF)12% of salary8-9%Till retirementLow
Life Insurance PremiumUp to ₹1.5LN/APolicy termN/A
NPS Tier 1 (Combined with 80CCD)Up to ₹1.5L9-11%Till 60 yearsModerate
Sukanya Samriddhi YojanaUp to ₹1.5L8%Till girl turns 21Low
Children's Tuition FeesUp to ₹1.5LN/ANoneN/A
Principal Repayment of Home LoanUp to ₹1.5LN/ANoneN/A

Recommended 80C Strategy

Conservative Investor
  • PPF: ₹1.5 lakh (safety + returns)
  • EPF: Continue contributions
  • Tax-saving FD: For additional safety
Balanced Investor
  • PPF: ₹75,000 (stability)
  • ELSS: ₹75,000 (growth)
  • EPF: Continue + Life Insurance
Aggressive Investor
  • ELSS: ₹1.5 lakh (max returns)
  • NPS: Additional ₹50K under 80CCD(1B)
  • Short 3-year lock-in for ELSS

Frequently Asked Questions

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Calculate Your Tax Savings

Use our income tax calculator to see how much you can save with Section 80C investments.