In short
Section 80C of the Income Tax Act lets you deduct up to ₹1,50,000 a year from your taxable income for investments and expenses such as EPF, PPF, ELSS mutual funds, life insurance premiums, home loan principal and children's tuition fees. In the 30% tax slab this saves up to ₹46,800 a year (₹1.5 lakh × 30% + 4% cess); in the 20% slab it saves up to ₹31,200. Section 80C is available only under the old tax regime.
How the 80C tax saver calculator works
The calculator adds up everything that already counts toward 80C (EPF, LIC, PPF, ELSS, home loan principal, tuition), caps it at ₹1.5 lakh, and shows the unused room. It then calculates your income tax under the old regime three times — with no 80C, with your current 80C, and with the full ₹1.5 lakh — to show how much you save now and how much more you could save.
Old-regime slabs used (FY 2025-26): nil up to ₹2.5 lakh, 5% from ₹2.5–5 lakh, 20% from ₹5–10 lakh, 30% above ₹10 lakh, plus 4% health and education cess. The ₹50,000 standard deduction and the Section 87A rebate (zero tax if taxable income is ≤ ₹5 lakh) are applied. HRA, 80D and other deductions are not included, so treat the result as an estimate.
Key facts
| 80C limit | ₹1,50,000 per financial year |
|---|---|
| Extra under 80CCD(1B) | ₹50,000 more for NPS (Tier 1) |
| ELSS lock-in | 3 years (shortest among 80C options) |
| PPF lock-in | 15 years; current rate ~7.1% p.a., tax-free |
| EPF | Employee contribution (12% of basic) counts automatically |
| Life insurance premium | Counts if premium ≤ 10% of sum assured |
| Tax saved at 30% slab | Up to ₹46,800 (₹1.5 lakh × 31.2%) |
| Regime | Old regime only — the new regime has no 80C |
Frequently asked questions
What is Section 80C?
Section 80C allows you to reduce your taxable income by up to ₹1.5 lakh a year through specified investments and expenses — EPF, PPF, ELSS, NSC, tax-saver FDs, life insurance premiums, home loan principal repayment and children's tuition fees. It applies only under the old tax regime.
How much tax can I save with 80C?
It depends on your slab: up to ₹7,800 in the 5% slab, ₹31,200 in the 20% slab and ₹46,800 in the 30% slab (including 4% cess), if you use the full ₹1.5 lakh.
Which is the best 80C investment?
ELSS mutual funds have the shortest lock-in (3 years) and market-linked returns, so they suit most young earners. PPF is safest with tax-free returns but locks money for 15 years. EPF happens automatically through salary. Avoid buying endowment insurance just for 80C — the returns are usually poor.
Does EPF count under 80C?
Yes. Your own 12% contribution to EPF counts toward the ₹1.5 lakh limit. The employer's contribution does not.
Is 80C available in the new tax regime?
No. The new regime offers lower slab rates but removes most deductions, including 80C. If your total deductions are above roughly ₹3.75 lakh, the old regime is usually cheaper; otherwise the new regime often wins.
Can I claim 80C without investing?
Partly. Home loan principal repayment, children's tuition fees, stamp duty on a house purchase and EPF all count without a separate investment.
Last reviewed: September 2026 · Educational estimate only, not financial advice. See Disclaimer.
