Section 80C Tax Saving Calculator
Maximize your tax savings under Section 80C
Your Tax Bracket
80C Investments
80C Tax Savings
Section 80C Tax Saving Calculator
Section 80C of the Income Tax Act is one of the most widely used provisions for tax saving in India. It allows individuals and HUFs to claim deductions of up to Rs 1,50,000 per financial year on specified investments and expenditures, effectively reducing taxable income and overall tax liability.
Eligible Investments Under Section 80C
- Employee Provident Fund (EPF) - Employee's contribution
- Public Provident Fund (PPF) - Up to Rs 1.5 Lakh per year
- ELSS Mutual Funds - Equity Linked Savings Scheme with 3-year lock-in
- Life Insurance Premium - On policies for self, spouse, or children
- National Savings Certificate (NSC)
- Tax Saving Fixed Deposit - 5-year tenure with banks
- Sukanya Samriddhi Yojana - For girl child education and marriage
- Home Loan Principal Repayment
- Tuition Fees - For up to 2 children at recognized institutions
Key Points to Remember
- The overall limit under Section 80C is Rs 1,50,000 per financial year
- This deduction is available only under the Old Tax Regime
- The New Tax Regime does not allow Section 80C deductions
- Multiple investments can be combined to reach the Rs 1.5 Lakh limit
- EPF contribution by the employer is not counted under 80C
Tax Saving by Bracket
- 5% bracket: Maximum tax saving of Rs 7,500 + cess
- 20% bracket: Maximum tax saving of Rs 30,000 + cess
- 30% bracket: Maximum tax saving of Rs 45,000 + cess
Best 80C Investment Options
- ELSS - Best for wealth creation (shortest lock-in of 3 years, market-linked returns)
- PPF - Best for risk-averse investors (guaranteed returns, 15-year tenure)
- EPF - Automatic savings with employer contribution
- Tax Saving FD - Safe option with fixed returns and 5-year lock-in
- SSY - Highest interest rate among government schemes
Using the Section 80C Calculator
Enter your investments across different 80C-eligible instruments and select your tax bracket to calculate the total tax savings. The calculator shows your eligible deduction (capped at Rs 1.5 Lakh), tax saved, and how much of the 80C limit you have utilized.
Optimising Your 80C Investments
This calculator shows how much tax you can save by investing the full Rs 1.5 lakh under Section 80C. Enter your income and existing 80C investments (including EPF) to see how much room remains and the tax impact of filling the gap. It recommends the most efficient 80C instruments based on your risk profile and investment horizon.
Frequently Asked Questions
What are the best 80C investment options?
ELSS mutual funds (3-year lock-in, market-linked), PPF (15-year lock-in, 7.1% guaranteed), EPF/VPF (retirement corpus, 8.25%), NPS (80CCD(1) within 80C limit), SCSS (for senior citizens, 8.2%), NSC (5-year, 7.7%), life insurance premiums, home loan principal repayment, and children's tuition fees. ELSS offers the best balance of returns and liquidity.
What is the Section 80C limit?
The maximum deduction under Section 80C is Rs 1.5 lakh per financial year. This limit includes all 80C-eligible investments combined (EPF, PPF, ELSS, NSC, life insurance, home loan principal, tuition fees, etc.). Your EPF employee contribution automatically counts against this limit.
Is 80C relevant under the new tax regime?
No. Section 80C deductions are not available under the new tax regime (except for employer NPS contribution). If you choose the new regime, your 80C investments do not reduce taxable income. However, you can still invest in these instruments for their inherent benefits (compounding, safety) even without the tax deduction.
