Deductions and exemptions · Tax Year 2025-26
Section 80C: full list of investments and payments
Section 80C lets you deduct up to ₹1,50,000 a year for specified savings and payments, but only in the old tax regime. See what the cap includes, which investments and payments qualify, and the details you must report for each.
On this page
Section 80C lets you deduct up to ₹1,50,000 a year from your income for certain investments and payments, such as provident fund, life insurance premium, tax-saving mutual funds, tuition fees and the principal of a home loan. It is available only in the old tax regime. The cap is shared with section 80CCC and your own NPS contribution under 80CCD(1).
The cap is signed off for the tax year 2025-26. For the tax year 2026-27 it is provisional, repeating the 2025-26 figure. The Income-tax Act, 2025 renumbers sections; this guide uses the earlier number, and the 2026-27 cap is TaxCare's provisional figure.
How the ₹1,50,000 limit works
Three sections share one cap. They are applied in this order:
- Section 80C (the items below).
- Section 80CCC (contribution to certain pension funds).
- Section 80CCD(1) (your own contribution to NPS or Atal Pension Yojana). This is limited on its own to 10% of salary if you are an employee, or 20% of gross total income if you are self-employed.
Together they cannot exceed ₹1,50,000. Separately, section 80CCD(1B) allows another ₹50,000 for NPS, and the employer's NPS contribution under 80CCD(2) is outside the cap.
Payments and investments TaxCare asks you about
TaxCare's deduction screen lists these examples for section 80C:
Item | Note |
|---|---|
Employees' provident fund (EPF) contribution | Usually shown in your payslip |
Public provident fund (PPF) | Deposits made in the year |
Life insurance premium | Premium paid on policies |
ELSS tax-saving mutual funds | Equity linked savings scheme units |
Tuition fees | Paid for children's full-time education |
Home loan principal | Repayment of the principal part |
Five-year tax-saving fixed deposit | With a bank or post office |
What the return asks for
For every 80C payment, the ITR asks for an identification number: the policy number, the account number or the receipt or document number. The total of the rows must match the amount you claim. If it does not, the department's validation rejects the claim.
What you get from this deduction
The deduction lowers your taxable income, so the tax you save depends on your slab. For a person whose income is in the 30% slab, ₹1,50,000 of 80C saves ₹45,000 plus cess. For someone whose income is in the 5% slab, the saving is much smaller. Use the calculator to see your own saving.
Is 80C still worth it?
Under the new regime your slabs are lower, but 80C is gone. See old vs new tax regime and worked examples by salary: at ₹10 lakh of salary with a full ₹1,50,000 of 80C, the new regime tax was nil and the old regime tax was ₹75,400 on TaxCare's figures. Do not invest only to save tax. Choose products that suit your goals.
Common mistakes
- Claiming more than ₹1,50,000. The excess is not allowed.
- Counting the same money twice. Your EPF and a life insurance premium both count, but together they stay within one cap.
- Claiming in the new regime. The deduction is not allowed there.
- Forgetting that EPF is already in your Form 16 or payslip. Do not enter it again if your employer's figure already includes it.
How TaxCare helps
TaxCare compares the old and new regime for you, applying the ₹1,50,000 cap across 80C, 80CCC and 80CCD(1) as the rules require. If you choose the old regime, it asks for the identification numbers the return needs and warns you when the rows do not add up to the amount claimed. Proofs stay with you. A Tax Expert can help with unusual claims. See also proofs you need for each deduction.
This guide gives general information and is not professional tax advice.
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