80C Tax Saving Calculator Maximize Your Tax Deductions
🎯 Save Up to ₹46,800 in Taxes + Build Wealth
Calculate your tax savings under Section 80C and discover how investing in ELSS, PPF, EPF, life insurance, and other instruments can save you up to ₹1,50,000 in tax deductions while building your wealth!
₹1.5 Lakh
₹46,800
Old Regime
80C Tax Saving Calculator
Calculate your tax savings under Section 80C
Your total annual income before deductions
Max ₹1,50,000 (PPF, ELSS, LIC, EPF, NSC, etc.)
Health insurance (80D), HRA, home loan interest, etc.
💡 Popular Section 80C Investment Options
ELSS Mutual Funds
3-year lock-in, 12-15% returns, wealth creation
PPF (Public Provident Fund)
15-year lock-in, 7.1% returns, risk-free
EPF (Employee Provident Fund)
Retirement benefit, 8.25% returns
Life Insurance Premium
Protection + tax benefit
Home Loan Principal
Repayment reduces tax liability
NSC, Tax Saver FD
Fixed returns, safe investment
Pro Tip
Combine different 80C options for diversification! For example: ₹50,000 in ELSS (high returns), ₹50,000 in PPF (safety), and ₹50,000 in EPF/life insurance. This way you get tax benefits, wealth creation, and financial security all together!
💡 Pro Tip: Diversify your 80C investments across ELSS (growth), PPF (safety), and life insurance (protection) for maximum benefit!
✨ Why Section 80C is a MUST for Every Taxpayer ✨
Save Up to ₹46,800
In the 30% tax bracket, investing ₹1.5 lakh under 80C saves you ₹46,800 in taxes - that's instant 31.2% returns!
Forced Savings
80C investments like ELSS, PPF, and EPF encourage disciplined saving while reducing your tax burden!
Dual Benefit
Save taxes NOW with 80C deduction AND build a retirement corpus for the future - win-win!
Understanding Section 80C Tax Deduction
Section 80C of the Income Tax Act allows you to reduce your taxable income by up to ₹1,50,000 per year by investing in specified financial instruments and expenses. This means if you're in the 30% tax bracket, you can save up to ₹46,800 (including cess) in taxes! The beauty of Section 80C is that it not only reduces your tax liability but also helps you build wealth through forced savings and investments.
What Qualifies Under 80C?
- ELSS Mutual Funds: Equity-linked savings scheme with 3-year lock-in
- PPF: Public Provident Fund with 15-year lock-in period
- EPF: Employee Provident Fund contributions
- Life Insurance: Premium paid for life insurance policies
- Home Loan: Principal repayment on home loans
- NSC, FD: National Savings Certificate, Tax-saving Fixed Deposits
- Children's Tuition: Tuition fees for up to 2 children
Key Features
- Maximum Limit: ₹1,50,000 per financial year
- Applicable Regime: Only for Old Tax Regime (not available in New Regime)
- Combined with 80CCC & 80CCD(1): Total limit remains ₹1.5L across all three sections
- Tax Savings: 0% slab = ₹0, 5% = ₹7,800, 20% = ₹31,200, 30% = ₹46,800 (with cess)
- Lock-in Varies: ELSS (3 years), PPF (15 years), EPF (until retirement), Tax-saver FD (5 years)
📊 Compare Popular 80C Investment Options
| Investment | Lock-in | Returns | Risk | Best For |
|---|---|---|---|---|
| ELSS Mutual Funds | 3 years | 12-15% p.a. | High | Wealth creation |
| PPF | 15 years | 7.1% p.a. | Zero | Long-term safety |
| EPF | Till retirement | 8.25% p.a. | Zero | Retirement corpus |
| Tax-saver FD | 5 years | 6.5-7% p.a. | Zero | Safe & fixed returns |
| Life Insurance | Policy term | 4-6% p.a. | Low | Protection + savings |
| NSC | 5 years | 7.7% p.a. | Zero | Guaranteed returns |
🌟 Why Our 80C Tax Saving Calculator Stands Out
Not just a calculator - it's your complete tax planning companion!
Both Tax Regimes Support
Compare Old vs New tax regime side-by-side to make the best choice for your situation
Exact Tax Slab Calculation
Precise tax calculation based on your income slab with automatic cess inclusion
Visual Tax Comparison
Interactive charts showing tax before and after 80C deductions for easy understanding
Other Deductions Included
Calculate combined benefits of 80C + 80D (health insurance) + HRA + home loan interest
Investment Options Guide
Detailed comparison of ELSS, PPF, EPF, NSC, and other 80C instruments with returns and lock-in
Smart Recommendations
Get personalized tips on optimizing your 80C investments based on your income and goals
❓ Frequently Asked Questions (FAQs)
1. What is Section 80C and how much can I save?
Section 80C allows you to reduce your taxable income by up to ₹1,50,000 per year by investing in specified instruments like ELSS, PPF, EPF, life insurance, NSC, and others. If you're in the 30% tax bracket, you can save up to ₹46,800 in taxes (₹1,50,000 × 30% + 4% cess). This benefit is only available under the Old Tax Regime.
2. Which is the best investment option under Section 80C?
The "best" option depends on your goals: ELSS mutual funds offer highest returns (12-15%) with shortest lock-in (3 years) - ideal for wealth creation. PPF offers safety with 7.1% returns and 15-year lock-in - good for risk-averse investors. EPF provides 8.25% returns for retirement planning. For diversification, split your ₹1.5L limit across multiple options: ₹50K in ELSS (growth), ₹50K in PPF (safety), ₹50K in life insurance (protection).
3. Can I claim 80C deductions under the New Tax Regime?
No, Section 80C deductions are NOT available under the New Tax Regime. The New Regime offers lower tax rates but removes most deductions and exemptions including 80C, 80D, HRA, and home loan interest. If you have significant investments in 80C instruments (>₹1L), the Old Regime with deductions usually results in lower tax liability than the New Regime. Use our calculator to compare both regimes!
4. What is the lock-in period for 80C investments?
Lock-in periods vary by instrument: ELSS has the shortest at 3 years, Tax-saving FDs and NSC have 5 years, PPF requires 15 years (partial withdrawal after 7 years), EPF is locked until retirement (58 years) or job change, and life insurance policies run for their entire term (typically 10-20 years). Choose based on your liquidity needs and financial goals.
5. Can both husband and wife claim ₹1.5 lakh deduction separately?
Yes! Both husband and wife can claim ₹1,50,000 deduction under Section 80C SEPARATELY if they are earning and file individual tax returns. This means a household can save up to ₹93,600 in taxes (both in 30% bracket). Each person should invest in their own name - you can each contribute to separate PPF accounts, ELSS funds, life insurance policies, etc. However, joint investments are counted based on actual investment proportion.
6. What happens if I withdraw my 80C investment before the lock-in period?
Early withdrawal before lock-in is either NOT allowed or comes with penalties: ELSS withdrawals are prohibited before 3 years - no exceptions. PPF allows premature closure after 5 years but with interest penalty. Tax-saving FDs don't allow premature withdrawal at all. For EPF, early withdrawal (before retirement) is allowed but TDS is deducted and tax benefits may be reversed. Always plan your 80C investments considering the lock-in period!
7. Does children's tuition fee qualify for 80C deduction?
Yes! Tuition fees paid for your children's education (up to 2 children) qualify for 80C deduction. This includes school, college, or university fees but ONLY the tuition component - not development fees, transport, hostel, books, or uniform. The institution must be in India. This is often overlooked but is a great way to utilize your 80C limit if you're paying school/college fees. Keep fee receipts as proof.
8. Is 80C limit combined with 80CCC and 80CCD(1)?
Yes, the ₹1,50,000 limit is COMBINED across Section 80C, 80CCC (pension fund contributions), and 80CCD(1) (NPS contributions). So if you invest ₹1L in PPF/ELSS under 80C and ₹50K in NPS under 80CCD(1), your total deduction is still capped at ₹1.5L. HOWEVER, there's an ADDITIONAL ₹50,000 deduction under 80CCD(1B) exclusively for NPS, taking your total tax-saving potential to ₹2 lakh (₹1.5L + ₹50K)!
9. Can I invest in 80C instruments throughout the year or only at year-end?
You can invest ANYTIME during the financial year (April to March). However, investing throughout the year via SIP in ELSS or monthly PPF deposits is BETTER than lump sum at year-end because: (1) You get rupee cost averaging in ELSS, (2) You earn interest on PPF deposits from the deposit month, (3) You avoid last-minute rush and better tax planning, (4) Develops saving discipline. Most people wait until March, but early and regular investments maximize returns!
10. Do I need to submit proof of 80C investments to my employer?
Yes, you should submit 80C investment proof to your employer at the start of the financial year (April-May) for them to deduct less TDS from your salary. Submit estimated investment declarations. At year-end (January-February), submit actual proof like ELSS/PPF/insurance receipts, home loan certificates, tuition fee receipts, etc. If you don't submit proof, employer deducts higher TDS and you claim refund while filing ITR. It's better to submit proof to avoid blocking your money as excess TDS!
Disclaimer
This calculator provides estimates based on the inputs provided and current tax rates for FY 2024-25. Actual tax liability may vary based on your complete financial situation, applicable deductions, and changes in tax laws. Section 80C benefits are only available under the Old Tax Regime. The investment options mentioned have different risk profiles and lock-in periods - past performance is not indicative of future results. Please read all scheme-related documents carefully before investing and consult with a qualified tax advisor or financial planner for personalized advice. This tool is for educational and informational purposes only and should not be considered as tax advice or investment recommendation.