Section 80C allows you to deduct up to ₹1.5 lakh from your taxable income every year. For someone in the 30% bracket, maximising 80C saves up to ₹46,800 in taxes annually. But not all 80C options are equal — here is a clear comparison.
ELSS (Equity Linked Savings Scheme) mutual funds are the only equity-linked 80C option, offering potential for higher returns along with tax savings. They have the shortest lock-in among all 80C instruments.
PPF (Public Provident Fund) offers EEE (Exempt-Exempt-Exempt) tax status — your investment, interest earned, and maturity amount are all tax-free. Current rate: 7.1% per annum, compounded annually.
NPS offers an additional deduction of up to ₹50,000 under Section 80CCD(1B) — over and above the ₹1.5 lakh 80C limit. For someone in the 30% bracket, this saves an additional ₹15,600 in taxes.
If you are salaried, your employer deducts 12% of basic salary as EPF every month — this automatically counts towards your 80C limit. Current rate: 8.15% p.a. Maturity is tax-free after 5 years of continuous service.
NSC offers 7.7% interest with a 5-year lock-in, backed by Government of India. Tax-Saving FDs offer 6.5–7.5% with a mandatory 5-year lock-in that cannot be broken. Suitable for investors who want zero market risk.
💡 Use the Income Tax Calculator on DigitCalc to see how maximising your 80C deductions changes your tax liability under both Old and New Regimes.
Compare your tax under Old vs New Regime with full deductions — free, instant.
Calculate Your Tax →Q: Can I claim 80C deductions under the New Tax Regime?
A: No. Section 80C deductions are only available under the Old Tax Regime. Under the New Regime, you cannot claim 80C, HRA, or most other deductions.
Q: What is the maximum tax I can save through 80C?
A: The maximum deduction is ₹1.5 lakh per year. For someone in the 30% bracket, this saves approximately ₹46,800 annually (₹1,50,000 × 30% + 4% cess).