Using every rupee of your ₹1.5 lakh 80C limit
Section 80C is the most familiar tax break in India — and the most under-used. The limit is ₹1,50,000 a year, it applies under the old regime, and most people either fall short of it or accidentally double up. Here's how to fill it deliberately.
What already counts (before you invest a rupee)
Several things you may already be paying go into 80C automatically:
- EPF — your 12% provident-fund deduction from salary.
- Home-loan principal repayment (the principal part of your EMI).
- Children's tuition fees — for up to two children.
- Life-insurance premiums you're already paying.
Add these up first. Often they cover a big chunk of the ₹1.5 lakh, and the gap you actually need to fill is smaller than you think.
Filling the rest, by what you want
- Want growth and the shortest lock-in: ELSS equity funds — a 3-year lock-in, the shortest of all 80C options, with equity-linked returns (and risk).
- Want safety: PPF and VPF — government-backed, steady, longer horizons. NSC and 5-year tax-saver fixed deposits also qualify.
- Have a daughter: Sukanya Samriddhi Yojana is a strong long-term, safe option that also counts.
The ₹50,000 most people miss
Over and above 80C, you can claim an extra ₹50,000 for NPS under Section 80CCD(1B) — a separate limit, not part of the ₹1.5 lakh. And employer contributions to NPS under 80CCD(2) are deductible up to 14% of salary, and uniquely still work under the new regime. If your employer offers it, that's free tax efficiency.
The one rule to remember
All of this is old-regime territory. If you're on the new regime, 80C and 80CCD(1B) don't apply — so before you lock money away to "save tax", check that the old regime is actually the cheaper choice for you in the first place.
See if the old regime saves you more
Deductions like 80C only help under the old regime — compare both before you commit.
This article is general information, not professional advice, and reflects the law as understood for FY 2025-26. Verify against the bare Act, Rules and current notifications, and consult a qualified professional before acting.