Section 80C — Investments That Save You Tax

Section 80C of the Income Tax Act lets you deduct up to ₹1.5 lakh a year from your taxable income by investing in approved instruments — one of the simplest ways to save tax (under the old regime).

The main 80C options

• ELSS — equity funds with the shortest lock-in (3 years) and growth potential. See our ELSS guide.
• PPF — safe, 15-year, tax-free returns.
• EPF — your salaried provident fund contribution.
• Life insurance premiums, NSC, SSY, 5-year tax-saver FDs and home-loan principal.

How to choose

Match the instrument to your goal and risk appetite. ELSS suits long-term wealth creation with the shortest lock-in; PPF/NSC suit the safe, debt portion of your plan. Don’t buy insurance purely to save tax — separate protection from investment.

Old vs new regime

Section 80C deductions apply under the old tax regime. The new regime offers lower slab rates but drops most deductions — compare both for your income. See old vs new tax regime and estimate with the income tax calculator.

This is general information, not tax advice. Rules change — confirm the current limits for your year.