Section 80C deductions: complete list for FY 2025-26, what qualifies, and how to use the ₹1.5 lakh limit
Section 80C gives you ₹1.5 lakh in deductions — but EPF already uses part of it automatically. At ₹40,000 basic salary, EPF alone accounts for ₹57,600. This guide lists all 12 qualifying instruments, confirms what doesn't qualify (health insurance, employer PF), and shows how to fill the remaining limit efficiently.
All figures and facts in this article are sourced directly from primary government and regulatory publications — including the Reserve Bank of India, SEBI, EPFO, the Income Tax Department, PFRDA, and IRDAI — and verified before publication. No claim is published from a single source without corroboration.
For informational purposes only. Section 80C deductions are only available under the old tax regime. Tax rules change — verify current rules at incometax.gov.in. Consult a practising CA for advice specific to your situation.
Section 80C of the Income Tax Act allows you to deduct up to ₹1,50,000 from your taxable income each financial year. This is the single largest deduction available to most salaried employees — and the most misunderstood. People claim investments they think qualify but don't, miss investments they have already made that do qualify, or assume the ₹1.5 lakh limit is per investment rather than combined across all.
This guide lists every qualifying investment and expense, confirms what does not qualify, and shows exactly how to use the limit efficiently.
The key rules before the list
Only under the old tax regime. Section 80C deductions are not available under the new tax regime. If you have chosen the new regime for FY 2025-26, this entire section does not apply to you.
Combined limit of ₹1,50,000. All investments across all 80C instruments combined cannot exceed ₹1.5 lakh per year. A PPF contribution of ₹1 lakh + ELSS of ₹80,000 = ₹1.8 lakh invested, but only ₹1.5 lakh is deductible.
Deduction is for the financial year of investment. An ELSS purchased on March 31, 2026 counts for FY 2025-26. A PPF deposit on April 1, 2026 counts for FY 2026-27.
Source: Section 80C, Income Tax Department
The complete 80C list
Investments
1. Employee Provident Fund (EPF) — employee contribution only
Your 12% monthly EPF contribution qualifies automatically. You do not need to do anything — it is deducted from your salary and reported in Form 16.
Limit: your actual contribution (subject to the overall ₹1.5L cap).
Note: your employer's contribution does not qualify under 80C.
2. Public Provident Fund (PPF)
Deposits to your PPF account qualify. Maximum PPF contribution per year: ₹1,50,000 (which by itself exhausts the 80C limit).
Account can be opened at any post office or designated bank.
3. ELSS (Equity Linked Savings Scheme) mutual funds
Tax-saving mutual funds with a mandatory 3-year lock-in per instalment. Investments qualify for 80C. The lock-in is per SIP instalment — each month's investment is locked for 3 years from that month's purchase date.
No minimum or maximum (subject to ₹1.5L overall cap).
4. National Savings Certificate (NSC)
Government-backed savings certificate with 5-year tenure. Interest is taxable but accrued interest also qualifies for 80C each year (except the final year). Available at post offices.
5. 5-year tax-saving Fixed Deposit
FDs with a minimum 5-year lock-in at a scheduled bank qualify for 80C. Interest earned is fully taxable. Premature withdrawal is not permitted.
6. Senior Citizen Savings Scheme (SCSS)
Available to residents aged 60+. 5-year tenure. Qualifies for 80C. Interest is taxable.
7. Sukanya Samriddhi Yojana (SSY)
Available for a girl child below age 10. Account matures at age 21 (or marriage after 18). Interest is tax-free (EEE status). Contributions qualify under 80C.
8. NPS — own contribution under Section 80CCD(1)
Your own NPS Tier 1 contribution (not employer's) qualifies under 80C, subject to the ₹1.5L overall cap. Note: an additional ₹50,000 is available under Section 80CCD(1B) over and above the ₹1.5L limit — so NPS can give you up to ₹2L in deductions total.
9. Voluntary Provident Fund (VPF)
Voluntary contributions to EPF over and above the mandatory 12%. Treated the same as EPF contributions for 80C purposes.
Insurance premiums
10. Life insurance premium
Premiums paid on life insurance policies (term, endowment, ULIP) for yourself, spouse, or children. The policy must be in your name or your family members' names, and the sum assured must be at least 10× the annual premium for policies issued after April 1, 2012.
Rider premiums (accidental death, critical illness) may not qualify — check the policy terms.
Loans and expenses
11. Home loan principal repayment
The principal portion of your home loan EMI qualifies for 80C (interest does not — interest is deductible separately under Section 24 up to ₹2L for self-occupied property).
The property must not be sold within 5 years of purchase — if sold earlier, the 80C deductions claimed in prior years are added back to income in the year of sale.
12. Stamp duty and registration charges on property purchase
Stamp duty and registration fees paid during a house purchase qualify for 80C in the year of payment. Claimed only once (year of registration).
13. Tuition fees for children's education
Full-time education tuition fees paid to any recognised school, college, or university in India for up to 2 children. Only tuition fees qualify — not development fees, hostel charges, or private tuition.
What does NOT qualify under 80C
| Common misconception | Reality |
| Employer's PF contribution | Does not qualify — only employee contribution does |
| Interest earned on PPF or NSC (final year) | Does not qualify |
| Health insurance premium | Section 80D, not 80C |
| Donations to charity | Section 80G, not 80C |
| NPS employer contribution | Section 80CCD(2), not 80C |
| ULIP maturity proceeds | Not a deduction — a receipt |
| Principal on home loan for let-out property | Not under 80C (different rules apply) |
| Education loan repayment | Section 80E (interest only), not 80C |
How to use the ₹1.5 lakh limit efficiently
The EPF deduction happens automatically — most salaried employees already have part of the ₹1.5L used up without realising it.
◇ Quick check — your automatic 80C from EPF:
Monthly basic salary × 12% × 12 = annual EPF contribution.
At ₹40,000 basic: ₹40,000 × 12% × 12 = ₹57,600 already in 80C.
Remaining limit: ₹1,50,000 − ₹57,600 = ₹92,400 to fill with ELSS, PPF, or other instruments.
At ₹80,000 basic: ₹80,000 × 12% × 12 = ₹1,15,200. Remaining: only ₹34,800.
Worked example:
Arjun has ₹40,000 basic. His EPF contribution is ₹57,600/year. He buys an ELSS of ₹80,000 and pays ₹30,000 in life insurance premium.
- EPF: ₹57,600
- ELSS: ₹80,000
- LIC: ₹30,000
- Total: ₹1,67,600 — but only ₹1,50,000 is deductible
He has over-invested by ₹17,600 relative to what he can claim. The excess ELSS investment is not wasted (it grows), but the tax benefit is capped.
⚠ Common mistake: Investing ₹1.5 lakh in PPF or ELSS at the end of the year without checking how much EPF has already accumulated. Many employees invest the full ₹1.5L in ELSS in March, then discover their EPF contribution already used ₹60,000–₹80,000 of the limit — effectively over-investing by that amount with no additional tax benefit.
The most tax-efficient 80C choices
| Instrument | Lock-in | Returns | Tax on returns | Best for |
| ELSS | 3 years | Market-linked (~11–13% historical) | LTCG above ₹1.25L at 12.5% | Investors with 3+ year horizon |
| PPF | 15 years | 7.1% guaranteed | Tax-free (EEE) | Conservative; long lock-in acceptable |
| VPF | Until retirement | 8.25% guaranteed | Tax-free (EEE) | Safe, better than PPF rate |
| NSC | 5 years | 7.7% (current) | Taxable | Guaranteed return, medium lock-in |
| 5-yr FD | 5 years | 6–7.5% (varies by bank) | Taxable | Lowest lock-in among guaranteed options |
For most working-age salaried employees with a long horizon and old regime preference, ELSS for the remaining 80C space (after EPF) is the most return-efficient choice. For those who prefer guaranteed returns, VPF (contributing more to EPF) at 8.25% beats PPF at 7.1% and both are EEE.
Bottom line
- Section 80C allows up to ₹1,50,000 deduction per year — old regime only
- EPF (employee contribution) counts automatically — check how much before investing elsewhere
- The 12 qualifying instruments: EPF, PPF, ELSS, NSC, 5-year FD, SCSS, SSY, NPS own contribution, VPF, life insurance premium, home loan principal, tuition fees, stamp duty
- Common non-qualifiers: health insurance (80D), donations (80G), employer PF contribution, interest income
- Do not over-invest beyond ₹1.5L in 80C instruments expecting more deduction — the limit is combined, not per instrument
Frequently asked questions
Q: Can I claim 80C for my spouse's life insurance premium?
A: Yes. Premiums paid on a life insurance policy for your spouse or children (whether or not they are financially dependent) qualify under 80C.
Q: I have two children. Can I claim tuition fees for both?
A: Yes — tuition fees for up to 2 children of the taxpayer qualify. Step-children also qualify. Tuition fees paid for a sibling or parent's child do not qualify.
Q: My home loan EMI is ₹40,000/month. How much of it is principal?
A: EMIs are front-loaded with interest. In early years, most of the EMI is interest. Check your amortisation schedule (available in your loan account online) — it shows the exact principal and interest split each month. The principal repaid during the year is what qualifies for 80C.
Q: I invest ₹1.5 lakh in ELSS in March. Will I definitely get the full ₹1.5L deduction?
A: Only if your EPF and other 80C investments total zero for the year — which is rare for salaried employees who have EPF deducted monthly. Always subtract your annual EPF contribution from ₹1.5L before deciding how much to invest in ELSS or PPF.
Q: Is there any deduction beyond the ₹1.5 lakh under 80C?
A: Yes — Section 80CCD(1B) allows an additional ₹50,000 deduction for your own NPS Tier 1 contributions, over and above the ₹1.5L Section 80C limit. This is the only way to get a deduction beyond ₹1.5L in the same category. Total maximum: ₹2,00,000 (₹1.5L under 80C + ₹50,000 under 80CCD(1B)).
Sources: Section 80C, Income Tax Department · 80C deductions guide, ClearTax · PPF interest rate, India Post
Last verified: May 2026. Tax rules and instrument interest rates are subject to change. Verify at incometax.gov.in before acting.
Content on Ek Crore is for educational purposes only. Nothing here is financial advice. Always consult a SEBI-registered advisor, CA, or qualified professional before making investment or tax decisions.