Question 1

What comes under 80C deduction?

Accepted Answer

Section 80C deductions (max ₹1.5 lakh): EPF employee contribution, PPF deposits, ELSS mutual fund investments, NSC purchases, LIC premium, 5-year tax saving FD, home loan principal repayment, children's tuition fee (up to 2 children), Sukanya Samriddhi deposits, NPS Tier-1 contribution (part of 80C limit), ULIP premium, pension scheme contribution.

Question 2

Which 80C investment gives highest return?

Accepted Answer

Returns comparison for 80C investments: ELSS mutual funds: 12-18% CAGR (market-linked, highest potential), EPF: 8.25% guaranteed, NSC: 7.7% guaranteed, PPF: 7.1% guaranteed, SSY: 8.2% guaranteed (girl child only), Tax-saving FD: 7.0-7.4%, LIC: 5-6% (lowest, avoid for pure investment). Best choice: ELSS for long-term growth, PPF for safe returns, EPF is automatic.

Question 3

Can I claim 80C without investing?

Accepted Answer

No, you cannot claim 80C without actual investment. However, many people already have 80C investments they forget to count: EPF deducted from salary counts, home loan principal repayment counts, children's school tuition fee counts, LIC premiums paid count. Check if you already have ₹1.5L covered before making new investments.

Question 4

Is 80C available in new tax regime?

Accepted Answer

No. Section 80C deduction is NOT available under the new tax regime. New regime has lower slab rates but does not allow 80C, HRA, home loan interest, or most deductions. If you want to claim 80C, you must opt for the old tax regime. Compare both regimes to see which saves more for your income level.

Question 5

80C limit FY 2025-26?

Accepted Answer

Section 80C deduction limit is ₹1,50,000 (₹1.5 lakh) for FY 2025-26. This limit has not changed since FY 2014-15. The limit is shared across all 80C instruments — you cannot claim more than ₹1.5L total from all 80C sources combined. In addition, 80CCD(1B) gives extra ₹50,000 for NPS investment over and above this limit.

Section 80C Deductions — Complete Guide 2026