Enter your investments to see your 80C utilisation, remaining room and total tax saved.
How Section 80C Works
One ₹1.5 Lakh Basket + an Extra ₹50k for NPS
Section 80C is a single combined basket — all your eligible investments together qualify for a deduction of up to ₹1,50,000. NPS gives an additional ₹50,000 window under Section 80CCD(1B), on top of the 80C limit:
Step 2: 80C deduction = lower of total or ₹1,50,000
Step 3: Add NPS deduction = lower of NPS or ₹50,000 under 80CCD(1B)
Step 4: Tax saved = (80C + NPS deduction) × your slab rate + 4% cess
Popular 80C Investments Compared
| Instrument | Lock-in | Returns (indicative) | Risk |
|---|---|---|---|
| ELSS Mutual Funds | 3 years | Market-linked (~10–13%) | High |
| PPF | 15 years | ~7.1% (tax-free) | Very Low |
| EPF | Till retirement | ~8.25% | Very Low |
| 5-Yr Tax-Saver FD | 5 years | ~6.5–7.5% (taxable) | Low |
| NSC | 5 years | ~7.7% | Low |
| Sukanya Samriddhi | Till girl turns 21 | ~8.2% (tax-free) | Very Low |
| Life Insurance (LIC) | Policy term | ~4–6% | Low |
ELSS has the shortest lock-in (3 years) and the highest growth potential, while PPF and Sukanya Samriddhi offer fully tax-free, government-backed returns. Most people already fill part of their 80C limit automatically through EPF and home loan principal — this planner shows how much is left to invest deliberately.
Section 80C — What Qualifies
1. The ₹1.5 Lakh Combined Limit
Sections 80C, 80CCC (pension plans) and 80CCD(1) (your own NPS/pension contribution) share a single combined ceiling of ₹1,50,000. It does not matter how many instruments you spread it across — the total deduction cannot exceed ₹1.5 lakh.
2. Investments That Qualify
- EPF & VPF — your provident fund contribution deducted from salary.
- PPF — Public Provident Fund, up to ₹1.5 lakh per year.
- ELSS — tax-saving equity mutual funds with a 3-year lock-in.
- Life insurance premiums — for self, spouse and children.
- Home loan principal repayment and stamp duty / registration in the year of purchase.
- Children's tuition fees — for up to two children, full-time education in India.
- 5-year tax-saver FD, NSC, Sukanya Samriddhi, SCSS, ULIPs.
3. The Extra ₹50,000 NPS Window
Beyond the ₹1.5 lakh, you can claim an additional deduction of up to ₹50,000 for your NPS contribution under Section 80CCD(1B). This takes your maximum self-funded deduction to ₹2,00,000. For a 30% taxpayer, that fully-used ₹2 lakh saves ₹62,400 in tax (including 4% cess).
4. Don't Over-Invest
Any 80C investment beyond ₹1.5 lakh gives no extra tax benefit. If you're already crossing the limit through EPF, insurance and home loan principal, redirect surplus money to the NPS ₹50k window or to non-80C goals instead of locking it into low-return tax-savers.
Step-by-Step Planning Example
Consider Anjali, in the 30% slab, planning her 80C for the year:
- EPF (auto from salary): ₹60,000
- Life insurance premium: ₹18,000
- Children's tuition fees: ₹22,000
- NPS (80CCD(1B)): ₹50,000
How the Plan Works Out:
- 80C used so far: ₹60,000 + ₹18,000 + ₹22,000 = ₹1,00,000.
- Remaining 80C room: ₹1,50,000 − ₹1,00,000 = ₹50,000. Anjali can still invest ₹50,000 (e.g. in ELSS) to fully use her limit.
- NPS: ₹50,000 fully claimed under 80CCD(1B).
If she adds ₹50,000 ELSS: total deduction = ₹1,50,000 (80C) + ₹50,000 (NPS) = ₹2,00,000.
Tax saved: ₹2,00,000 × 30% = ₹60,000, plus 4% cess = ₹62,400 for the year.