80C Deduction Calculator
TaxCalculate your Section 80C tax savings for FY 2025-26. Enter EPF, PPF, ELSS, LIC, and other investments to find deductions and tax saved under the old regime.
🇮🇳This tool is specific to India
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Eligible Deduction (max ₹1.5 lakh)
₹80,000
Total 80C Investments
₹80,000
Tax Saved (at your slab rate)
₹24,960
Tax Saved at 30% Slab
₹24,960
Remaining 80C Room
₹70,000
Corpus Breakdown
How your investment grows over time
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Returns
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What is a 80C?
An 80C Deduction Calculator helps you calculate your total Section 80C investments, the eligible deduction (capped at ₹1,50,000), and the tax saved at your income slab. Section 80C is the most widely used tax-saving provision in India — virtually every salaried taxpayer with EPF, PPF, LIC, or a home loan benefits from it under the old regime.
The calculator aggregates all eligible investments into a single total, applies the ₹1,50,000 limit, and shows the tax saved both at your actual slab rate and at the maximum 30% slab — useful for understanding the opportunity cost of unused 80C room.
Important: Section 80C deductions are only available under the old tax regime. If you have opted for the new regime, this calculator does not apply to your situation. Use the Income Tax Calculator to determine which regime is better for you.
Section 80C covers investments and expenses across multiple categories:
- Compulsory savings: EPF contribution (automatic for salaried employees)
- Voluntary tax-saving investments: PPF, ELSS, NSC, Tax Saving FD, SCSS
- Insurance: LIC and other life insurance premiums
- Property: Home loan principal repayment
- Education: Children's school tuition fees (up to 2 children)
- Welfare schemes: Sukanya Samriddhi Yojana for girl children
Related calculators: Income Tax Calculator for overall tax, PPF Calculator for PPF maturity and returns, and Home Loan EMI Calculator for the principal/interest split.
How to use this 80C calculator
- Enter each eligible investment category — EPF, PPF, ELSS, LIC, etc.
- For EPF: use your annual employee contribution (monthly EPF deduction × 12).
- For home loan: enter only the principal repayment portion (not interest).
- Select your Income Tax Slab — the slab rate your income falls in under the old regime.
- The Eligible Deduction shows the deductible amount (max ₹1.5 lakh).
- Tax Saved at Your Slab shows the rupee benefit from 80C.
- If Remaining 80C Room is positive, consider investing that amount in ELSS (highest returns, 3-year lock-in) or PPF (risk-free, 7.1%).
Formula & Methodology
Eligible Deduction:min(total 80C investments, ₹1,50,000)Tax Saved:Eligible Deduction × (Slab Rate ÷ 100) × 1.04(the 1.04 factor accounts for the 4% Health & Education Cess) Tax saving reference table at full ₹1.5 lakh utilisation: | Slab Rate | Tax Saved (₹1,50,000) | |---|---| | 5% | ₹7,800 | | 10% | ₹15,600 | | 15% | ₹23,400 | | 20% | ₹31,200 | | 25% | ₹39,000 | | 30% | ₹46,800 | Key 80C instruments reference: | Instrument | Returns | Lock-in | Risk | |---|---|---|---| | EPF | 8.25% (FY 24-25) | Until retirement | Very Low | | PPF | 7.1% | 15 years | Very Low | | ELSS | 12–15% (historical) | 3 years | High | | NSC | 7.7% | 5 years | Very Low | | Tax Saving FD | 6.5–7.5% | 5 years | Very Low | | SSY | 8.2% | Until girl turns 21 | Very Low | | NPS (80CCD 1) | 8–10% (historical) | Until age 60 | Medium |
Frequently Asked Questions
What is Section 80C deduction?
Section 80C of the Income Tax Act allows individual taxpayers to claim a deduction of up to ₹1,50,000 per financial year on certain investments and expenses, directly reducing their taxable income. This deduction is available only under the old tax regime — it is not available if you opt for the new regime. A taxpayer in the 30% slab saves up to ₹46,800 (₹1,50,000 × 30% + 4% cess) by fully utilising Section 80C.
Which investments qualify under Section 80C?
The main Section 80C investments and expenses include: Employee Provident Fund (EPF) contribution, Public Provident Fund (PPF), ELSS mutual funds, life insurance premiums (LIC and others), principal repayment of home loan, children's tuition fees (up to 2 children), Sukanya Samriddhi Yojana (SSY), National Savings Certificates (NSC), Tax Saving Fixed Deposits (5-year FD), Senior Citizens Savings Scheme (SCSS), and NPS contribution under 80CCD(1).
What is the maximum deduction under Section 80C?
The combined maximum deduction under Section 80C, Section 80CCC (pension fund premium), and Section 80CCD(1) (NPS — employee contribution) is ₹1,50,000 per financial year. Investing more than ₹1.5 lakh in eligible instruments does not provide additional deduction — the cap is hard. An additional ₹50,000 deduction is available under Section 80CCD(1B) for NPS contributions over and above the ₹1.5 lakh limit.
Is Section 80C available under the new tax regime?
No. Section 80C deductions (and most other deductions like 80D, HRA) are not available if you opt for the new tax regime. The new regime offers lower slab rates but a clean slate — most deductions are disallowed. The [Income Tax Calculator](/income-tax-calculator/) compares both regimes to show which is more beneficial for your specific income and deduction profile.
Which 80C investment gives the best returns?
ELSS (Equity Linked Savings Scheme) mutual funds have historically offered the highest returns among 80C instruments (12–15% CAGR historically) and have the shortest lock-in at 3 years. PPF offers a guaranteed 7.1% (tax-free on maturity) with a 15-year lock-in, suitable for conservative investors. NPS offers market-linked returns (8–10% historically) with a lock-in until age 60. Choose based on your risk appetite and time horizon.
Is EPF automatically included in 80C?
Yes. Your employee contribution to EPF (Employees' Provident Fund) — typically 12% of basic salary — is automatically eligible for Section 80C deduction. For a person with ₹50,000 monthly basic salary, EPF at 12% is ₹6,000/month = ₹72,000 per year, consuming nearly half of the ₹1.5 lakh 80C limit before any voluntary investment is made.
Can I claim home loan principal under 80C?
Yes. The principal component of EMIs on a home loan (not the interest component) is eligible for Section 80C deduction. The interest component is eligible separately under Section 24(b) for up to ₹2 lakh per year for self-occupied property. The combined home loan benefit across both sections can reduce taxable income by ₹3.5 lakh per year.
How is Section 80C tax saving calculated?
Tax saved = Eligible 80C deduction × Your marginal tax rate × 1.04 (cess factor). For ₹1,50,000 fully utilised at 30% slab: ₹1,50,000 × 30% × 1.04 = ₹46,800. At 20% slab: ₹31,200. At 5% slab: ₹7,800. The marginal slab rate matters — the same ₹1.5 lakh investment saves very different amounts depending on where you fall in the tax schedule.
What is Sukanya Samriddhi Yojana (SSY) under 80C?
Sukanya Samriddhi Yojana is a government savings scheme for girl children, offering a tax-free interest rate of 8.2% per annum (current). Contributions qualify for Section 80C deduction. The account can be opened for a girl child below 10 years of age and matures when she turns 21. It is one of the few EEE (Exempt-Exempt-Exempt) investments in India — deduction on investment, interest accrual, and maturity proceeds are all tax-free.
Is the 80C limit likely to increase?
The Section 80C limit of ₹1.5 lakh has been unchanged since FY 2014-15. Finance Ministry committees have recommended raising it to ₹2.5–3 lakh given inflation, but no revision has been made. The government has instead been pushing taxpayers toward the new regime (which eliminates 80C complexity), making a limit increase for the old regime less likely in the near term.