What is the 80C Tax Saving?
Section 80C allows a deduction of up to ₹1,50,000 a year for specified investments and expenses, available only under the old tax regime. At a 30% slab it is worth about ₹46,800 in tax saved.
Most salaried people are already partway there without realising: EPF contributions, life insurance premiums, children's tuition fees and home loan principal repayment all count towards the same limit.
Formula & worked example
The deduction is capped, so anything above ₹1.5 lakh gives no benefit:
Tax saved = Eligible × slab rate × 1.04 (cess)
Worked example: EPF ₹60,000 + insurance ₹25,000 + ELSS ₹25,000 + other ₹15,000 = ₹1,25,000 used. At a 30% slab plus cess that saves ₹39,000. The unused ₹25,000 of headroom would save a further ₹7,800 if invested.
How to use this 80c tax saving calculator
- Select your marginal tax slab — the rate on your top rupee of income.
- Enter your annual EPF contribution (12% of basic × 12) — it counts automatically.
- Add insurance, ELSS, PPF, NSC, tuition fees and home loan principal.
- Check "Limit Remaining" before making any last-minute March investment.
Smart tips
- Count EPF first. Many people over-invest in March without realising EPF already covers half the limit.
- ELSS has the shortest lock-in of all 80C options at three years, and is the only equity choice.
- Home loan principal counts under 80C; the interest is separate under Section 24 with its own ₹2 lakh limit.
- Investing beyond ₹1.5 lakh gives no extra 80C benefit — put the surplus into NPS under 80CCD(1B) instead.
- None of this applies in the new regime. Check which regime you are on before planning around 80C.
Frequently asked questions
What is the 80C limit for 2026?
₹1,50,000 per financial year, unchanged for over a decade. It is available only in the old tax regime.
What investments qualify under 80C?
EPF, PPF, ELSS, NSC, tax-saving FDs, life insurance premiums, Sukanya Samriddhi, children's tuition fees, home loan principal and NPS Tier-1 contributions.
Does EPF count towards 80C?
Yes, your own 12% contribution counts. For many salaried people this alone uses a large part of the ₹1.5 lakh limit.
Can I claim 80C in the new tax regime?
No. Section 80C is unavailable in the new regime, which is why the regime comparison matters before you plan tax-saving investments.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Income Tax Department — slab rates, s.87A rebate, surcharge and 4% cess, AY 2026-27 (page updated 9 Jul 2026), Income Tax Department — deduction limits for AY 2026-27: 80C ₹1,50,000, 80CCD(1B) ₹50,000, 80D ₹25,000/₹50,000, 80TTA ₹10,000, 80TTB ₹50,000, s.24(b) ₹2,00,000 (page updated 9 Jul 2026). How we check these numbers.