Section 80C Deduction: Complete Guide for FY 2026-27

Section 80C is the most popular tax-saving provision of the Income Tax Act in India. It allows individuals and Hindu Undivided Families (HUFs) to reduce their taxable income by investing in specific instruments or incurring certain expenses.

However, it is important to note that Section 80C deductions are only available if you choose the Old Tax Regime. If you opt for the New Tax Regime, you waive the right to claim these deductions.

The total limit for Section 80C is ₹1,50,000 per year. You can mix and match the following options:

• ELSS (Equity Linked Savings Scheme): Tax-saving mutual funds with a 3-year lock-in.
• PPF (Public Provident Fund): Government-backed long-term savings with a 15-year tenure.
• EPF (Employee Provident Fund): Your contribution to your employer-managed retirement fund.
• Life Insurance Premiums: Premiums paid for yourself, spouse, or children.
• Home Loan Principal: The principal portion of your home loan EMI.
• SSY (Sukanya Samriddhi Yojana): Savings for the girl child.