What qualifies under 80C?
| Instrument | Notes |
|---|---|
| PPF | 15-year lock-in; 7.1% (Q1 FY25) |
| EPF (employee share) | Auto-deducted from salary |
| ELSS mutual funds | 3-year lock-in; equity-linked |
| Life-insurance premium | Premium ≤ 10% of sum assured |
| Home-loan principal | Principal portion of EMI; not interest (that's 24b) |
| Tuition fees | Max 2 children; in India only |
| NSC / Tax-saving FD | 5-year lock-in; interest is taxable |
| Sukanya Samriddhi | For girl child < 10 yrs; 8.2% (Q1 FY25) |
| SCSS | Senior Citizens Savings; max ₹30 L; 8.2% |
| NPS Tier-I (80CCD(1)) | Counts toward 80C limit |
Stacking deductions beyond 80C
The ₹1.5 L cap is hit fast — once you do, additional rupees yield zero tax benefit. After exhausting it, look for these add-on buckets:
- 80CCD(1B) — additional ₹50,000 in NPS Tier-I (over and above 80C)
- 80D — health insurance: ₹25,000 self/family + ₹25,000 parents (₹50,000 if parents are senior citizens)
- 24(b) — home-loan interest up to ₹2,00,000 (self-occupied); separate from 80C principal
- 80E — education-loan interest, no upper limit, for 8 years
- 80G — donations to approved trusts (50% or 100% as listed)
None of these are available in the new tax regime — they're old-regime-only deductions.
FAQ
Are 80C deductions allowed in the new regime?
No. The new regime is a near-no-deduction regime: only the standard deduction (₹75,000), employer NPS contribution u/s 80CCD(2), and a few specific allowances are permitted.
Can both spouses claim 80C separately?
Yes — each spouse has their own ₹1.5 L limit. Coordinate so that joint life-insurance premiums and tuition-fee payments are claimed by the spouse who actually paid them, in proportion.
Does PPF interest count toward 80C?
No. Only the deposit you make in the year qualifies. The interest credited is tax-free but not a separate 80C deduction.