What qualifies under section 80C
The statutory cap is ₹1,50,000 per individual per year and this page lists instruments that are 80C-eligible — not recommendations. Lock-in periods differ substantially, and that is usually a better differentiator than the deduction itself:
| Instrument | Deduction | Typical lock-in |
|---|---|---|
| Employee provident fund (EPF) | Employee contribution | Counts while employed |
| Public provident fund (PPF) | Contribution | 15 years |
| Equity-linked savings schemes (ELSS) | Investment | 3 years per unit |
| Tax-saver fixed deposits | Deposit | 5 years |
| National savings certificate (NSC) | Deposit | 5 years |
| Life-insurance premium | Premium | Policy term; premium limits apply |
| Sukanya Samriddhi deposits | Contribution | Until maturity rules of the account |
| Principal repayment of a home loan | Principal | No lock-in; loan continues |
| Tuition fees, full-time study | Fees paid | No lock-in |
| Senior citizens savings scheme (SCSS), within limits | Deposit | 5 years |
Cap arithmetic, with the calculator
You enter an 80C number; the engine uses min(entered, ₹1,50,000) and shows the amount it used in the deduction waterfall. Anything over the cap is irrelevant that year.
Value of the cap: claiming the full ₹1,50,000 moves you down the old-regime slabs by an order of a slab band or two, at your marginal rate. At the 30% band the full deduction is worth ₹46,800 of tax including cess; at the 20% band, ₹31,200. Run the comparison
Frequently asked questions
What is the Section 80C limit for FY 2026-27?
₹1,50,000 a year, shared with section 80CCC and the principal repayment part of section 80CCE's combined limit. Two-salary households claim separately because each individual has their own cap.
Is section 80C available in the new regime?
No. It is not a new-regime deduction — the cap applies only if your compare figure selects the old regime. The calculator shows both outcomes on every input.
Does my provident fund already fill the 80C limit?
Often. A basic salary of ₹60,000 a month with a 12% employee EPF contribution is ₹86,400 of 80C-eligible money a year without any separate saving. Check your Form 16 before buying new 80C products.
What is the shortest lock-in among 80C instruments?
Equity-linked savings schemes (ELSS) lock units for three years; the others commonly run three (some small-savings), five (tax-saver FDs), or longer (PPF fifteen years; life-insurance and NSC depending on term).
Is tuition fees for children section 80C-eligible?
Yes, tuition fees paid to a university, college, school or other educational institution for full-time study are 80C-eligible. Donations, development fees, coaching classes and hostel fees are not.