80C Deduction Planner
Plan your Section 80C investments to claim the full Rs 1.5 lakh deduction. Compare ELSS, PPF, EPF, LIC, NSC and home loan principal. See tax saved across income slabs.
80C Deduction Planner
Max limit: Rs 1,50,000 — track every rupee
Used to calculate your tax slab and savings
Auto-deducted from salary — check your payslip
Min Rs 500, max Rs 1.5L/year — 7.1% tax-free
3-year lock-in, highest potential returns among 80C
Life insurance for self, spouse and children
Principal portion of EMI (not interest)
80C deduction available under old tax regime only. Combined limit: Rs 1,50,000/year.
Most salaried employees already exhaust 80C through EPF alone (12% of basic). A Rs 50,000 basic salary contributes Rs 72,000/year to EPF — leaving only Rs 78,000 of 80C space. Check your EPF contribution before investing in ELSS or PPF to avoid double-counting.
What is Section 80C?
Section 80C of the Income Tax Act allows individuals to claim a deduction of up to Rs 1,50,000 per year from their taxable income by investing in specified instruments. This is one of the most widely used tax-saving provisions in India, applicable only under the old tax regime.
Which instruments qualify under 80C?
The most popular 80C instruments are: EPF employee contribution (auto-deducted for salaried), PPF (Public Provident Fund at 7.1% tax-free), ELSS mutual funds (3-year lock-in, highest returns potential), LIC life insurance premiums, NSC (National Savings Certificate), 5-year bank FD, home loan principal repayment, Sukanya Samriddhi Yojana (for girl child), and tuition fees paid for up to 2 children.
80C planning tips for salaried employees
Check your EPF first. For a Rs 50,000 basic salary, your EPF contribution is Rs 72,000/year — using almost half the 80C limit before you invest anything. Always check your payslip before investing in ELSS or PPF. Use ELSS for the remaining limit. After EPF, ELSS gives the highest returns with the shortest lock-in (3 years). A monthly SIP of Rs 6,500 in ELSS fills the remaining Rs 78,000 of 80C space. Don't over-invest. Contributions beyond Rs 1.5L give no additional 80C benefit — redirect extra savings to NPS (80CCD(1B)) for another Rs 50,000 deduction.
Tax saved at different slabs
The value of 80C depends entirely on your tax slab. At 5% slab: Rs 1.5L × 5% × 1.04 cess = Rs 7,800 saved. At 20% slab: Rs 31,200 saved. At 30% slab: Rs 46,800 saved. The higher your income, the more 80C is worth — making it most powerful for those earning above Rs 10 lakh annually.