How to Save Income Tax Under Section 80C (and Beyond)

Last updated: 1 July 2026

Section 80C is the most popular tax-saving tool in India — it lets you reduce your taxable income by up to ₹1.5 lakh a year. But it only helps under the old tax regime. Here's how to use it well.

What is Section 80C?

80C lets you deduct up to ₹1.5 lakh of certain investments and expenses from your taxable income each year. If you're in the 30% bracket, fully using it can save around ₹46,800 in tax.

Best 80C options

  • ELSS mutual funds — shortest lock-in (3 years) and equity growth potential.
  • PPF — safe, tax-free, 15-year horizon.
  • EPF — automatically deducted from salary.
  • Life insurance premiums, NSC, tax-saving FDs, home-loan principal, children's tuition fees.

Beyond 80C

  • 80D — health insurance premiums (extra deduction).
  • 80CCD(1B) — an additional ₹50,000 for NPS.
  • Section 24(b) — up to ₹2 lakh home-loan interest.
  • HRA exemption — if you pay rent.

Important

All of these deductions apply only under the old tax regime. If you use the new regime, most are unavailable — so first decide your regime, then plan deductions.

Try it yourself

Use the Income Tax Calculator to run your own numbers.

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