Key facts
- Maximum deduction
- ₹1,50,000 per year
- Available under
- Old regime only
- Combined with 80CCC + 80CCD(1)
- Yes — shared ₹1.5L cap
- Lock-in (ELSS)
- 3 years
Section 80C of the Income-tax Act gives you up to ₹1,50,000 of deductions every financial year if you opt for the old regime. The cap is shared with Sections 80CCC (pension funds) and 80CCD(1) (NPS employee contribution).
Eligible payments include EPF, VPF, PPF (max ₹1.5L), ELSS mutual funds (3-year lock-in), tax-saving FDs (5-year lock-in), NSC, Sukanya Samriddhi, life-insurance premium (max 10% of sum assured for policies issued on/after 01-Apr-2012), principal repayment of a home loan, stamp duty on house purchase and tuition fees for up to two children (school/college, India only).
Under the new regime (default from FY 2023-24) Section 80C is NOT available — only the standard deduction of ₹75,000 (FY 25-26) and 80CCD(2) employer NPS apply.
FAQs
Is ELSS still the best 80C option?
For investors comfortable with equity, ELSS funds have the shortest lock-in (3 years) and historically beat PPF/NSC returns over 7+ year horizons. Conservative investors should mix PPF (sovereign-backed) with ELSS.
Can NRIs claim Section 80C?
Yes, NRIs can claim 80C for life-insurance premium, ELSS, tuition fees and home-loan principal — but cannot invest in PPF, NSC or Sukanya Samriddhi as a new account.
Does home-loan principal qualify even if the property is rented?
Yes, principal repayment qualifies regardless of self-occupied or let-out status. The property must not be sold within 5 years of possession, else the deduction is reversed.
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Last updated: 10 Apr 2026