Section 80C Deductions: ₹1.5 Lakh Limit, Eligible Instruments & Rules

धारा 80C कर कटौती (अधिकतम ₹1.5 लाख) नियम

Comprehensive guide to Section 80C of the Income Tax Act: claiming up to ₹1,50,000 deduction under the Old Tax Regime across Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Savings Schemes (ELSS), Sukanya Samriddhi Yojana (SSY), Life Insurance premiums, children's school tuition fees, and housing loan principal repayments.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Overall statutory ceiling: Aggregate deductions under Section 80C, 80CCC, and 80CCD(1) cannot exceed ₹1,50,000 in a financial year.

Eligible Instruments: PPF (15-yr lock-in, EEE tax status), ELSS Mutual Funds (3-yr shortest lock-in), EPF employee contribution, Sukanya Samriddhi Yojana (girl child), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS), 5-year Tax-Saver Bank FDs.

Eligible Expenses: Children's full-time school/college tuition fees (up to 2 children), stamp duty and registration charges for house purchase, and housing loan principal repayment.

Available only under the Old Tax Regime.

Who is Eligible & When Does it Apply?

Applicability #1

Individual taxpayers and Hindu Undivided Families (HUFs).

Step-by-Step Procedure & Compliance Roadmap

Calculate Mandatory Contributions

First count mandatory EPF deductions from salary slips and children's school tuition receipts.

Bridge the Balance with Tax-Saving Investments

Invest remaining amount up to ₹1.5 Lakh in ELSS, PPF, or SSY before 31st March.

Declare in ITR Schedule VIA

Claim total 80C amount up to ₹1,50,000 under the Old Tax Regime in your annual ITR.

Mandatory Documents Checklist

EPF statement / Form 16 Part B, ELSS investment proof, PPF passbook, School tuition fee receipts, Bank home loan principal statement

Common Mistakes & Compliance Risks to Avoid

•Investing more than ₹1.5 Lakh in 80C expecting higher tax benefit (excess investment receives zero extra tax deduction).

•Assuming 80C is available under the New Tax Regime.

Frequently Asked Questions

Which Section 80C investment has the shortest lock-in period?

ELSS (Equity Linked Savings Scheme) mutual funds have the shortest lock-in period of 3 years among all Section 80C instruments, compared to 5 years for Tax-Saver FDs/NSC and 15 years for PPF.

Interactive Tax Calculators

Income Tax Calculator (Old vs New)

Related Tax Knowledge

80C Investments Comparison Section 80D Health Insurance

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.