Section 80C — Complete Guide to Tax Saving Investments in 2026
By Parul Singh, GST Practitioner · Tax Saving
Table of Contents
Section 80C alone saves my salaried clients an average of 46,800 per year. But most people invest randomly without strategy.
Section 80C is the most popular tax-saving provision in India, allowing a deduction of up to ₹1.5 lakh from gross total income. Here's how to make the most of it.
Eligible Investments
| Investment | Max Deduction | Lock-in |
|---|---|---|
| PPF | ₹1.5L (combined) | 15 years |
| ELSS Mutual Funds | ₹1.5L (combined) | 3 years |
| NPS | ₹1.5L (combined) | Till retirement |
| NSC | ₹1.5L (combined) | 5 years |
| 5-Year FD | ₹1.5L (combined) | 5 years |
| LIC Premium | ₹1.5L (combined) | Policy term |
| Home Loan Principal | ₹1.5L (combined) | Loan term |
| Sukanya Samriddhi | ₹1.5L (combined) | Till girl child is 21 |
| SSY | ₹1.5L (combined) | Till marriage/education |
Best 80C Strategy
- For aggressive investors: ELSS (shortest lock-in of 3 years, equity returns)
- For conservative investors: PPF (EEE tax treatment, 7.1% guaranteed)
- For government employees: NPS (additional 80CCD(1B) of ₹50,000)
- For parents: Sukanya Samriddhi (8.2% for girl child) + children's tuition fees
Remember: The ₹1.5 lakh limit is combined across ALL 80C investments. Don't spread too thin — focus on 2-3 instruments.