Tax · Guide
Section 80C deductions: full list for salaried Indians
Section 80C is the single most-used deduction for salaried taxpayers under the old regime. From tax year 2026-27 it sits under a new section number in the Income-tax Act, 2025, but the list and the cap carry over unchanged. It allows you to reduce your taxable income by up to Rs 1,50,000 in one financial year by making eligible investments or expenses. Here is the complete, current list.
By FinancePaisa Editorial Team · Research & editorialUpdated · 4 min read
On this page (5 sections)
Complete list of 80C-eligible investments and expenses
| Instrument | Lock-in | Returns / notes |
|---|---|---|
| Employee Provident Fund (EPF) | Till retirement / job change | Government-declared rate (8.25% for FY 2024-25). Employer + employee 12% each of basic + DA. |
| Public Provident Fund (PPF) | 15 years | Government rate reset quarterly (7.1% Q1 FY25-26). Tax-free interest and maturity. |
| Equity Linked Savings Scheme (ELSS) | 3 years | Market-linked equity mutual funds. Long-term gains above Rs 1.25L taxed at 12.5%. |
| Sukanya Samriddhi Yojana (SSY) | Till daughter turns 21 | For girl child under 10. Government rate (8.2% Q1 FY25-26). |
| Life insurance premium | Policy tenure | Premium up to 10% of sum assured. Includes term plans, endowment, ULIPs. |
| Tax-saving fixed deposit | 5 years | Bank / post office. Taxable interest. |
| National Savings Certificate (NSC) | 5 years | Post office. Rate 7.7% (Q1 FY25-26). Interest reinvested and eligible under 80C except final year. |
| Senior Citizens Savings Scheme (SCSS) | 5 years (extendable) | For 60+. Rate 8.2% (Q1 FY25-26). Interest taxable. |
| Home loan principal repayment | Loan tenure | Includes stamp duty and registration in year of purchase. |
| Tuition fees | Same FY | For up to 2 children, in any recognised Indian school/college. Fees only, not donations or transport. |
| ULIP premium | 5 years | Insurance + market-linked investment. Premium up to 10% of sum assured. |
| NPS Tier-1 (via 80CCD(1)) | Till 60 | Included within the Rs 1.5L limit. 80CCD(1B) allows a further Rs 50k. |
| Post Office Time Deposit (5-yr) | 5 years | Rate 7.5% (Q1 FY25-26). |
Employee Provident Fund (EPF)
- Lock-in
- Till retirement / job change
- Returns / notes
- Government-declared rate (8.25% for FY 2024-25). Employer + employee 12% each of basic + DA.
Public Provident Fund (PPF)
- Lock-in
- 15 years
- Returns / notes
- Government rate reset quarterly (7.1% Q1 FY25-26). Tax-free interest and maturity.
Equity Linked Savings Scheme (ELSS)
- Lock-in
- 3 years
- Returns / notes
- Market-linked equity mutual funds. Long-term gains above Rs 1.25L taxed at 12.5%.
Sukanya Samriddhi Yojana (SSY)
- Lock-in
- Till daughter turns 21
- Returns / notes
- For girl child under 10. Government rate (8.2% Q1 FY25-26).
Life insurance premium
- Lock-in
- Policy tenure
- Returns / notes
- Premium up to 10% of sum assured. Includes term plans, endowment, ULIPs.
Tax-saving fixed deposit
- Lock-in
- 5 years
- Returns / notes
- Bank / post office. Taxable interest.
National Savings Certificate (NSC)
- Lock-in
- 5 years
- Returns / notes
- Post office. Rate 7.7% (Q1 FY25-26). Interest reinvested and eligible under 80C except final year.
Senior Citizens Savings Scheme (SCSS)
- Lock-in
- 5 years (extendable)
- Returns / notes
- For 60+. Rate 8.2% (Q1 FY25-26). Interest taxable.
Home loan principal repayment
- Lock-in
- Loan tenure
- Returns / notes
- Includes stamp duty and registration in year of purchase.
Tuition fees
- Lock-in
- Same FY
- Returns / notes
- For up to 2 children, in any recognised Indian school/college. Fees only, not donations or transport.
ULIP premium
- Lock-in
- 5 years
- Returns / notes
- Insurance + market-linked investment. Premium up to 10% of sum assured.
NPS Tier-1 (via 80CCD(1))
- Lock-in
- Till 60
- Returns / notes
- Included within the Rs 1.5L limit. 80CCD(1B) allows a further Rs 50k.
Post Office Time Deposit (5-yr)
- Lock-in
- 5 years
- Returns / notes
- Rate 7.5% (Q1 FY25-26).
Common items that are NOT eligible under 80C
- Regular fixed deposits (less than 5-year lock-in).
- Direct equity purchases (stocks, non-ELSS mutual funds).
- Interest on home loan (that is section 24(b), separate Rs 2L limit).
- Health insurance premium (that is section 80D, separate).
- Donations (that is section 80G, separate).
- Rent paid (that is HRA under section 10(13A) or 80GG, separate).
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How to maximise the Rs 1.5L cap without over-locking
Most salaried employees already have EPF filling part of the 80C bucket automatically - typically Rs 30,000 to Rs 1.2 lakh depending on basic salary. Add tuition fees if you have school-going children. If the remaining gap is small, ELSS is usually the best top-up: 3-year lock-in (shortest), market-linked returns. Avoid buying life insurance ONLY to save tax - if you need term cover, buy pure term cover on merit; premiums qualify anyway. If you value guaranteed returns and can lock money for 15 years, PPF is a reliable long-term addition.
Frequently asked questions
Sources & references
- Income Tax Act 1961 - Section 80C — CBDT
- Provisions of the Income-tax Act, 1961 vis-a-vis Income-tax Act, 2025 — CBDT
- PPF, NSC, SCSS current rates (Ministry of Finance quarterly) — National Savings Institute
Rates, fees, eligibility, and product terms cited on this page reflect the sources above at the time of publication and may have changed since. Always verify directly with the lender or regulator.