Under the Old Tax Regime, Section 80C remains the most popular tax-saving gateway in India, letting individuals deduct up to ₹1.5 Lakh from their annual taxable income through selective financial investments.
Standard Section 80C Allocation Slabs
Here are the most popular and reliable tax-saving vehicles under Section 80C:
- Public Provident Fund (PPF): Government-backed, 15-year lock-in with tax-free interest, making it ideal for risk-averse long-term savers.
- Equity Linked Savings Scheme (ELSS): Equity mutual funds with a short 3-year lock-in period, offering high wealth generation potential.
- Employee Provident Fund (EPF): Automatic payroll deductions that count toward the ₹1.5 Lakh limit.
- Life Insurance Premiums: Premiums paid for term or traditional life insurance policies.
- Children's School Tuition: Tuition fees paid for up to two children.
Additional NPS Deduction (Section 80CCD(1B))
Beyond the basic Section 80C limit, you can claim an additional deduction of up to **₹50,000** for investments in the National Pension System (NPS), bringing the total possible investment deduction under these sections to ₹2 Lakh.