How can I save tax under Section 80C?
Updated · CardKhoj Editorial Team
Short answer
Under the old tax regime, you can reduce taxable income by up to ₹1.5 lakh a year through 80C investments and expenses: EPF, PPF, ELSS mutual funds, 5-year tax-saver FDs, life insurance premiums, Sukanya Samriddhi, NSC, home loan principal and children's tuition fees. These deductions are not available in the new regime.
Popular 80C options compared
| Option | Lock-in | Returns | Risk |
|---|---|---|---|
| ELSS mutual funds | 3 years | Market-linked | High |
| PPF | 15 years | Govt-set (tax-free) | None |
| Tax-saver FD | 5 years | Fixed (taxable) | Low |
| Sukanya Samriddhi | Till daughter turns 21 | Govt-set (tax-free) | None |
| NSC | 5 years | Fixed (taxable) | None |
Check what you already have
Your EPF contribution, life insurance premiums, home loan principal and children's school fees may already use much of the ₹1.5 lakh limit — add those up before investing more.
Beyond 80C
- 80D: health insurance premiums — up to ₹25,000 (₹50,000 for seniors), plus the same again for parents.
- 80CCD(1B): extra ₹50,000 for NPS contributions.
The Income-tax Act, 2025 renumbered sections from April 2026; these deductions are still commonly known by their old section names.
This answer is general information, not personalised financial or tax advice. Rules, rates and limits change — confirm with your bank, the RBI or a qualified adviser before making decisions.