What is Section 80C?
Under Section 80C of the Income Tax Act, you can claim tax deductions up to ₹1.5 lakh on eligible investments. This applies to the old tax regime and is one of the most popular tax-saving options.
Eligible Investments & Limits under 80C (2025)
| Investment Type | Maximum Limit | Lock-in Period | Expected Returns |
|---|---|---|---|
| ELSS Mutual Funds | ₹1.5 lakh | 3 years | 12-18% |
| PPF (Public Provident Fund) | ₹1.5 lakh | 15 years | 7-8% |
| EPF / VPF | ₹1.5 lakh | Till service | 8-9% |
| NSC (National Savings Certificate) | ₹1.5 lakh | 5 years | 7-8% |
| 5-Year Tax Saver FD | ₹1.5 lakh | 5 years | 6-7.5% |
| Life Insurance Premium | ₹1.5 lakh | Policy term | 5-8% |
| Sukanya Samriddhi Yojana | ₹1.5 lakh | 21 years | 8%+ |
| Children’s Tuition Fees | ₹1.5 lakh (up to 2 children) | N/A | N/A |
Which is the Best Option?
For long-term growth, ELSS Mutual Funds are the best (shortest lock-in + high returns). For safety, go with PPF/EPF.