# Section 80C Deduction List FY 2026-27: What Counts > Every investment and expense that counts under 80C (section 123 of the new Act), with lock-ins, current rates, tax on returns, and when 80C saves nothing. Source: https://trykosh.com/learn/section-80c-deductions-guide Guide - Income tax # Section 80C deductions: the full list and how to use it 80C lets you cut up to INR 1.5 lakh from your taxable income in the old regime. Much of it is often used up already by EPF and insurance. Here's everything that counts, what each option really costs you, and how to fill the gap sensibly. Updated 25 October 20266 min readBy the Kosh team On this page[How 80C works](#how-it-works)[The full 80C list](#full-list)[The fine print on each](#fine-print)[Worked example: filling the gap](#worked-example)[How to claim 80C, step by step](#how-to-claim)[Common mistakes](#mistakes)[FAQs](#faq) ## How 80C works Section 80C (now **section 123** of the Income-tax Act, 2025, though everyone still calls it 80C) lets you subtract up to **INR 1.5 lakh** a year from your income for certain investments and payments. It's an **old-regime** deduction only. The cap is shared: EPF, PPF, ELSS, insurance premiums, tuition fees and home-loan principal all go into one INR 1.5 lakh bucket, together with pension-fund contributions under the related sections. What it's worth depends on your slab. INR 1.5 lakh of deduction saves **INR 46,800** at 30% (with cess), **INR 31,200** at 20%, and **INR 7,800** at 5%. In the new regime it saves nothing. **80C only helps if you end up in the old regime** Before you invest a rupee for 80C, check your regime. Take INR 18 lakh of salary in Hyderabad with INR 3.6 lakh HRA, INR 25,000 rent a month and health cover. Full 80C cuts the old-regime tax from INR 2,72,064 to INR 2,25,264, and adding INR 50,000 of NPS takes it to INR 2,09,664. The new regime is still cheaper at INR 1,50,800. Here, 80C saves nothing that matters. ## The full 80C list Rates below are those in force for October to December 2026. Small-savings rates are reset every quarter. What counts under 80C, FY 2026-27 Option Lock-in Return Tax on the return EPF (your 12%) and VPF Till retirement or leaving work, with partial withdrawals 8.25% (declared for FY 2025-26) Tax-free, except interest on your own contributions above INR 2.5 lakh a year PPF 15 years, partial withdrawals from year 7 7.1% Tax-free ELSS mutual funds 3 years Market-linked, not guaranteed Equity LTCG: 12.5% above INR 1.25 lakh a year Sukanya Samriddhi Yojana Till the daughter turns 21 (partial at 18) 8.2% Tax-free NSC 5 years 7.7% Taxable; accrued interest counts as fresh 80C for the first four years 5-year post office time deposit 5 years 7.5% Taxable at slab 5-year tax-saver bank FD 5 years Varies by bank Taxable at slab Senior Citizens' Savings Scheme 5 years 8.2% Taxable at slab Life insurance premium Policy term Low for endowment plans Usually exempt on maturity, subject to premium limits Home-loan principal, stamp duty and registration Don't sell the house within 5 years Not an investment Not applicable Children's tuition fees None Not an investment Not applicable ## The fine print on each - **EPF counts automatically.** Your own 12% of basic is already in the bucket. On a INR 50,000 basic that's INR 72,000 a year, almost half the cap, before you do anything. Check your payslip first. - **Tuition fees:** only the tuition part (not transport, hostel or development fees), for up to two children, paid to a school, college or university in India for full-time education. - **Home-loan principal:** the principal part of your EMI, plus stamp duty and registration in the year you pay them. Sell the house within 5 years of getting possession and the deductions claimed are added back to your income. - **Life insurance:** premiums for yourself, your spouse or children. For most policies, the premium counted is limited to 10% of the sum assured. Buying an endowment or money-back plan for 80C usually locks you into low returns; term insurance premiums count too, and cost far less. See [how much term insurance you need](/learn/how-much-term-insurance-do-i-need). - **ELSS:** each SIP instalment has its own 3-year lock-in, so a 12-month SIP unlocks over 12 months three years later. - **Beyond INR 1.5 lakh:** your own NPS contribution gets an extra INR 50,000 under 80CCD(1B), over and above 80C. Health insurance has its own limit under 80D. Use the [NPS tax benefit calculator](/tools/nps-tax-benefit-calculator) and the [80D calculator](/tools/section-80d-calculator). ## Worked example: filling the gap Vikram is in the old regime at the 30% slab. His EPF is INR 72,000, he puts INR 30,000 into PPF and pays INR 20,000 for a life policy his parents bought him years ago. That's INR 1,22,000, leaving INR 28,000 of room. The [80C calculator](/tools/section-80c-calculator) shows that putting INR 28,000 more into an 80C option before 31 March saves him about **INR 8,736** in tax. Which option? That depends on what the money is for, not on the tax. If it's for a goal 10 or more years out, he might top up PPF for a government-backed, tax-free 7.1% (reset each quarter), or use ELSS for equity exposure with a short lock-in. If he might need it in two years, none of these suit him, and losing INR 8,736 of tax saving is better than locking up money he'll need. Kosh explains these categories and runs the numbers; it doesn't pick a fund for you. [Free tool**80C calculator**Add up what already counts toward 80C, see how much of the INR 1.5 lakh limit is left, and what filling it would save at your slab.](/tools/section-80c-calculator)[Free tool**PPF calculator**See what your Public Provident Fund grows to at the current 7.1% rate, year by year, including how much the timing of your deposit matters.](/tools/ppf-calculator)[Free tool**ELSS calculator**Work out what an ELSS investment could save you in tax and grow to. It tracks the 3-year lock-in on every instalment and the tax when you sell.](/tools/elss-calculator)[Free tool**NPS tax benefit calculator**NPS is one of the few tax breaks left in the new regime. See what your employer's contribution and your own INR 50,000 save under each regime.](/tools/nps-tax-benefit-calculator)[Free tool**80D calculator**Health insurance premiums for you and your parents can cut your old-regime tax by up to INR 1 lakh. See your exact deduction and what it's worth.](/tools/section-80d-calculator)[Free tool**Old vs new regime calculator**Find out which regime leaves you more money this year, and exactly how many more rupees of deductions the old regime would need to catch up.](/tools/old-vs-new-tax-regime-calculator) ### How the bucket fills at different life stages - **First job:** EPF alone may use INR 40,000 to INR 80,000. But salaries under INR 12.75 lakh pay no tax in the new regime, so for most first jobbers 80C is beside the point. Save for goals, not deductions. - **Parents of school-age children:** tuition fees for two children plus EPF often fill the whole INR 1.5 lakh without any new investment. Sukanya Samriddhi counts too if you have a daughter under 10 and want a long-term, fixed-rate option for her. - **Homeowners with a loan:** the principal part of the EMI often fills the bucket on its own in the later years of a loan. Check the bank's certificate before investing more. ## How to claim 80C, step by step 1. **Add up what's already in the bucket**: EPF from your payslip, tuition fees, home-loan principal from the bank's certificate, existing insurance premiums. 2. **Decide whether you're in the old regime at all.** Run the [old vs new regime calculator](/tools/old-vs-new-tax-regime-calculator) with the full INR 1.5 lakh. If the new regime still wins, stop here. 3. **Spread the top-up across the year.** A monthly PPF deposit or ELSS SIP from April avoids the March scramble, when people buy whatever product is put in front of them. 4. **Declare to your employer in April and submit proof in January or February**, so TDS reflects the deduction. 5. **Claim anything you missed in your ITR.** If the employer didn't count an investment, enter it in the return (old regime, filed by the due date) and the extra TDS is refunded. ## Common mistakes - **Investing above INR 1.5 lakh for the tax.** The extra cuts nothing. - **Paying for 80C you'll never use** because the new regime is cheaper for you anyway. - **Buying insurance as an investment.** Separate protection (term cover) from saving (PPF, EPF, funds). - **Forgetting EPF and principal** and then over-investing to "reach" 80C. - **Breaking a 5-year deposit early.** The deduction is reversed. ## Frequently asked questions What is the maximum deduction under 80C? INR 1.5 lakh a year, shared across all eligible investments and payments including EPF, PPF, ELSS, life insurance, tuition fees and home-loan principal. Your own NPS contribution gets a separate extra INR 50,000 under 80CCD(1B). Can I claim 80C in the new tax regime? No. 80C is available only in the old regime. In the new regime the only common deductions are the INR 75,000 standard deduction and the employer's NPS contribution of up to 14% of basic. Does my EPF contribution count under 80C? Yes. Your own 12% EPF contribution and any voluntary PF count toward the INR 1.5 lakh limit. The employer's share doesn't count under 80C. Check your payslip before investing more, because EPF often uses half the limit already. What is the new section number for 80C? Under the Income-tax Act, 2025, in force from 1 April 2026, the deduction is in section 123. The limit of INR 1.5 lakh and the eligible items are the same as under the old 80C. Which 80C option gives the best return? It depends on risk and lock-in, not just the rate. For October to December 2026, Sukanya Samriddhi pays 8.2%, NSC 7.7% and PPF 7.1%, while ELSS is market-linked with a 3-year lock-in and no guaranteed return. Match the option to when you'll need the money. ## Sources - [Income Tax Department](https://www.incometax.gov.in/) - [India Post savings schemes](https://www.indiapost.gov.in/) - [EPFO](https://www.epfindia.gov.in/) Written by the Kosh team and checked against the rules in force on 25 October 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting. ## Upload your statement and Kosh does this for you. Kosh reads your bank and card statements, works out your tax under both regimes and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-section-80c-deductions-guide)