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Section 80C Tax Saving Calculator — FY 2025-26

Plan your Section 80C investments to maximize the ₹1,50,000 deduction limit. Map EPF, PPF, ELSS, LIC, tuition fees, and more to find your 80C gap. Calculate actual tax saved at your slab rate, add the extra ₹50,000 NPS deduction via 80CCD(1B), and compare all 80C instruments side by side. Available under the old tax regime only.

Old Regime Only: Section 80C deductions are available ONLY under the old tax regime. The new regime (default from FY 2023-24) does not allow 80C deductions. Check which regime is better for you.
12% of basic + DA, auto-deducted from salary
7.1% p.a., 15yr lock-in, fully tax-free (EEE)
3yr lock-in (shortest), market-linked ~12-15%
Premium paid on life insurance policies
Full-time education tuition fees only

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How to Use This Calculator

My 80C Planner tab

Enter each of your Section 80C investments — EPF contribution, PPF, ELSS, LIC premium, tuition fees, tax-saving FD, NSC, home loan principal, and NPS. The calculator adds them up and shows how much of the ₹1,50,000 limit you have used, the remaining gap, and a recommendation for which instrument to invest in to fill the gap. If you have a daughter, enable the toggle to get Sukanya Samriddhi recommendations.

Tax Saving tab

See the actual tax saved in rupees based on your total 80C deduction and your tax slab rate under the old regime. Optionally enable the 80CCD(1B) NPS toggle to add an extra ₹50,000 deduction over and above the ₹1.5L limit. The calculator shows income tax saved, 4% cess saved, and monthly tax saving.

Instrument Comparison tab

Compare all 8 Section 80C instruments side by side — returns, lock-in period, risk level, and tax treatment. See the decision matrix showing the best instrument for returns (ELSS), safety (PPF), daughter (SSY), and liquidity (ELSS 3yr lock-in). Effective post-tax returns at the 30% slab are shown for each instrument.

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The Formula

Section 80C tax saving is calculated based on your total qualifying investments and your marginal tax slab rate:

Section 80C Tax Saving:
Deductible = min(Total 80C Investments, ₹1,50,000)
Tax Saved = Deductible × Tax Slab Rate
Cess Saved = Tax Saved × 4%
Total Tax Saved = Tax Saved + Cess Saved

Section 80CCD(1B) — Additional NPS:
NPS Deduction = min(NPS Contribution, ₹50,000)
Additional Tax Saved = NPS Deduction × Tax Slab Rate × 1.04

Maximum Tax Saving (at 30% slab):
80C alone: ₹1,50,000 × 30% × 1.04 = ₹46,800/year
80CCD(1B): ₹50,000 × 30% × 1.04 = ₹15,600/year
Combined maximum: ₹62,400/year

Effective Post-Tax Returns (30% slab):
PPF: 7.1% (fully tax-free, EEE)
SSY: 8.2% (fully tax-free, EEE)
ELSS: ~12.2% effective (14% CAGR minus 12.5% LTCG above ₹1.25L/FY)
Tax-saving FD: ~4.6% effective (6.5% minus 30% tax on interest)
NSC: ~5.4% effective (7.7% minus 30% tax on interest)

The ₹1,50,000 limit is shared across 80C, 80CCC (pension plans), and 80CCD(1) (NPS employee contribution). The 80CCD(1B) NPS deduction of ₹50,000 is separate and over and above this limit. All these deductions are available only under the old tax regime.

Example

Rohit — Pune software engineer, ₹15L salary, 30% slab, old regime

Rohit earns ₹15,00,000 per year (basic ₹6,00,000). He has EPF auto-deducted, pays LIC premium, and his daughter's school tuition. He wants to know if he should invest more to fill the 80C gap.

Step 1: Map current 80C investments

EPF (12% of ₹6L basic)₹72,000
LIC premium₹15,000
Daughter's school tuition₹50,000
Total 80C used₹1,37,000
Remaining gap₹13,000

Step 2: Fill the gap

RecommendationInvest ₹13,000 in ELSS or PPF
Total 80C after filling gap₹1,50,000

Step 3: Calculate tax saved (30% slab)

80C deduction₹1,50,000
Tax saved (30%)₹45,000
Cess saved (4%)₹1,800
Total saved (80C)₹46,800

Step 4: Add NPS 80CCD(1B) for extra saving

NPS contribution₹50,000
Tax saved on NPS (30%)₹15,000
Cess saved (4%)₹600
Total saved (80CCD(1B))₹15,600

Rohit saves ₹46,800 via Section 80C and an additional ₹15,600 via NPS 80CCD(1B), for a grand total of ₹62,400 in annual tax savings. He also invests ₹50,000 in Sukanya Samriddhi for his daughter at 8.2% tax-free — but this comes from the 80C basket (included in the ₹1.5L).

FAQ

The Section 80C deduction limit is ₹1,50,000 per financial year for FY 2025-26. This limit has remained unchanged since FY 2014-15. It is a combined limit shared across Sections 80C, 80CCC (pension fund contributions), and 80CCD(1) (employee NPS contribution). An additional ₹50,000 deduction is available under Section 80CCD(1B) for NPS contributions, making the effective combined limit ₹2,00,000 for those who invest in NPS. These deductions are available only under the old tax regime.
The main qualifying instruments are: EPF (employee contribution, auto-deducted), PPF (7.1%, 15yr lock-in, EEE), ELSS (mutual fund, 3yr lock-in, market-linked), tax-saving FD (5yr lock-in, ~6.5%), NSC (7.7%, 5yr), Sukanya Samriddhi (8.2%, for daughters under 10), LIC premium, tuition fees (up to 2 children), home loan principal repayment, stamp duty & registration charges (year of purchase), NPS (under 80CCD(1), within the ₹1.5L cap), and SCSS (Senior Citizens Savings Scheme). The ₹1.5L limit is shared across all of these.
No. Section 80C deductions are NOT available under the new tax regime. The new regime (which became the default from FY 2023-24 per Finance Act 2023) offers lower tax rates and a simplified structure but removes most deductions including 80C, 80D, HRA, and LTA. The only deductions available under the new regime are the standard deduction of ₹75,000 for salaried individuals and employer's NPS contribution under 80CCD(2). If you want to claim 80C deductions, you must explicitly opt for the old regime. Use our Income Tax Calculator to compare both regimes.
Section 80CCD(1B) provides an additional deduction of up to ₹50,000 for contributions to the National Pension System (NPS). This is over and above the ₹1,50,000 limit of Section 80C. So if you invest ₹1.5L in 80C instruments AND ₹50,000 in NPS under 80CCD(1B), your total deduction becomes ₹2,00,000. At the 30% slab, this saves ₹15,600/year in additional tax (including cess). This deduction is also available only under the old tax regime. NPS funds are locked until age 60, with 60% lump sum tax-free and 40% used to buy an annuity.
It depends on your goals: For highest returns: ELSS mutual funds (12-15% expected CAGR, shortest 3-year lock-in, but market-linked risk). For maximum safety: PPF (7.1% guaranteed, sovereign, fully tax-free EEE, 15-year lock-in). For a daughter: Sukanya Samriddhi Yojana (8.2%, highest guaranteed rate, EEE, for girls under 10). For extra deduction: NPS via 80CCD(1B) (additional ₹50K above the ₹1.5L limit). Avoid tax-saving FD at the 30% slab as the effective return (~4.6%) is poor. Most young salaried professionals should prioritize EPF (auto-deducted) + ELSS or PPF for the remaining gap.

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