22 March 2026 · 49Tax
Section 80C Deductions: Complete List & Guide for 2026
Everything you need to know about Section 80C tax deductions — eligible investments, limits, and how to claim them in your ITR for AY 2026-27.
What Is Section 80C?
Section 80C of the Income Tax Act allows you to claim a deduction of up to Rs 1,50,000 per financial year on specified investments and expenses. This is the single largest deduction available under the old tax regime.
Section 80C deductions are available only under the old tax regime. If you opt for the new regime, you cannot claim them. See our regime comparison guide to decide which is better for you.
Complete List of 80C Eligible Investments
Retirement & Provident Funds
| Investment | Lock-in Period | Returns | Key Points |
|---|---|---|---|
| EPF (Employee Provident Fund) | Till retirement | ~8.25% | Auto-deducted from salary. Both employee and employer contributions qualify. |
| PPF (Public Provident Fund) | 15 years | ~7.1% | Government-backed. Interest is tax-free. Partial withdrawal after 7 years. |
| VPF (Voluntary Provident Fund) | Till retirement | ~8.25% | Voluntary additional contribution above 12% EPF. Same interest rate as EPF. |
Insurance
| Investment | Lock-in | Key Points |
|---|---|---|
| Life Insurance Premium | Policy term | Premium for self, spouse, or children. Max deduction limited to 10% of sum assured. |
| ULIP | 5 years | Unit Linked Insurance Plan. Combines insurance + investment. |
Equity-Linked Investments
| Investment | Lock-in | Returns | Key Points |
|---|---|---|---|
| ELSS (Equity Linked Savings Scheme) | 3 years | Market-linked | Shortest lock-in among 80C options. LTCG above Rs 1.25 lakh taxable at 12.5%. |
Fixed Income
| Investment | Lock-in | Returns | Key Points |
|---|---|---|---|
| NSC (National Savings Certificate) | 5 years | ~7.7% | Interest is taxable but reinvested interest qualifies for 80C. |
| 5-year Tax Saver FD | 5 years | ~7% | Available with banks. Interest is fully taxable. |
| SCSS (Senior Citizens Savings Scheme) | 5 years | ~8.2% | For individuals above 60. Interest paid quarterly. |
| Sukanya Samriddhi Yojana | 21 years / marriage | ~8.2% | For girl child. Interest is tax-free. EEE status. |
Expenses That Qualify
| Expense | Key Points |
|---|---|
| Tuition fees | For up to 2 children. Only tuition component — not donations, transport, or hostel fees. |
| Home loan principal repayment | EMI principal component qualifies. Does not include interest (that is 80EEA/Section 24). |
| Stamp duty & registration charges | On purchase of residential property. Claimable in the year of payment. |
How Much Can You Save?
The maximum deduction under Section 80C is Rs 1,50,000. At the highest tax slab of 30%, this translates to a tax saving of:
- Rs 46,800 (including 4% cess)
If your total 80C-eligible investments already exceed Rs 1.5 lakh (common if EPF is deducted from salary), you are already maximizing this benefit.
Claiming 80C in Your ITR
When filing your ITR, deductions under 80C are reported in the Chapter VI-A section. You need to specify the amount for each category (insurance, PPF, ELSS, etc.).
With 49Tax, if you upload your Form 16, the 80C deductions are automatically extracted and pre-filled. You can review and adjust before generating the JSON.
Strategy: How to Maximize 80C
- Start with EPF — already deducted from salary, no action needed
- Top up with ELSS — if you want equity exposure with the shortest lock-in
- Add PPF — for guaranteed, tax-free returns (great for conservative investors)
- Claim tuition fees — often forgotten, but qualifies if you have children in school
- Home loan principal — if you have a home loan, this adds up
Beyond 80C: Other Deductions
Section 80C is just one piece. You can also claim:
- Section 80D — Health insurance (up to Rs 25,000 self + Rs 50,000 parents if senior)
- Section 80CCD(1B) — Additional Rs 50,000 for NPS
- Section 80TTA — Rs 10,000 savings account interest
- Section 80E — Education loan interest (no upper limit)
- Section 24(b) — Home loan interest up to Rs 2 lakh
Together with 80C, these deductions can total over Rs 4 lakh, making the old regime significantly beneficial.
File Your Return with All Deductions
49Tax extracts deduction details from your uploaded documents and computes the benefit under both regimes automatically.