🇮🇳India · Section 80C / 80CCD(1B)

Section 80C Optimizer
India 2026

Maximize your ₹1.5 lakh 80C deduction across PPF, ELSS, EPF, NPS, and more. See utilization in real time + the extra ₹50k NPS bonus.

Section 80C (₹1.5 lakh cap)100%
₹1.50 L used / ₹1.50 L cap
Section 80CCD(1B) — extra NPS100%
₹50,000 used / ₹50,000 cap (NPS Tier 1 only)

Your 80C allocations

EPFEmployee Provident Fund
₹80,000
Risk: LowReturn: 8.25%Lock-in: Until retirement (or 5y for full tax-free withdrawal)

Auto-deducted from salary by employer (12% of basic). Already counts toward 80C.

PPFPublic Provident Fund
₹30,000
Risk: LowReturn: 7.1%Lock-in: 15 years (extendable in 5y blocks)

EEE tax status. Govt-backed. Best risk-free 80C option.

ELSSEquity-Linked Savings Scheme
₹30,000
Risk: HighReturn: 12-15%Lock-in: 3 years (shortest of 80C)

Equity mutual fund. Highest expected return. LTCG taxable above ₹1L gains.

NPS Tier 1National Pension System
₹0
Risk: MediumReturn: 9-12%Lock-in: Until age 60

Extra ₹50k deduction under 80CCD(1B) over and above 80C.

Life Insurance PremiumTerm + endowment policies
₹10,000
Risk: LowReturn: 5-6% (endowment); 0% (term)Lock-in: Policy tenure

Premium qualifies; ULIP/endowment maturity may be taxable per Sec 10(10D) rules.

NSCNational Savings Certificate
₹0
Risk: LowReturn: 7.7%Lock-in: 5 years

Fixed-rate post office instrument. Interest accrued and reinvested counts under 80C in subsequent years.

5-Year Tax-Saver FDBank fixed deposit
₹0
Risk: LowReturn: 6.5-7.5%Lock-in: 5 years (no premature withdrawal)

Interest is fully taxable. Lower post-tax return than PPF.

Home Loan PrincipalSection 80C portion
₹0
Risk: Return: Lock-in: Loan tenure

Principal portion of EMI counts. Interest is separately deductible under Sec 24(b).

Children's Tuition FeesUp to 2 children, full-time education
₹0
Risk: Return: Lock-in:

Only tuition fee component qualifies. Donations, transport, books, hostel do NOT qualify.

Extra NPS Tier 1Section 80CCD(1B) — additional ₹50k
₹50,000

Bonus deduction over and above the ₹1.5 lakh 80C cap. Only available for NPS Tier 1 contributions. Most overlooked tax saving for high earners.

Your tax bracket:
₹2.00 L
Total deduction (80C + 80CCD)
₹62,400
Tax saved this year (30% + 4% cess)
₹18.72 L
Tax saved over 30-year career
💡

Section 80C fully utilised — well done

You're maxing both 80C (₹1.5L) and 80CCD(1B) (₹50k) — total ₹2 lakh deduction unlocked.

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Felix tracks your 80C utilisation across PPF/ELSS/EPF/NPS as you make contributions, so you never under- or over-shoot the cap by March 31.

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❓ Frequently Asked Questions

What is the Section 80C deduction limit for FY 2026-27?

Section 80C allows a deduction of up to ₹1.5 lakh per financial year on qualifying investments and expenses. This is an aggregate cap across ALL 80C instruments combined — PPF, ELSS, EPF, NPS Tier 1, life insurance premium, NSC, 5-year FD, home loan principal repayment, and tuition fees for two children. Section 80C is only available under the old tax regime; it is not available under the new tax regime.

Which is the best Section 80C investment in 2026?

Best for risk-averse investors: PPF (7.1% guaranteed, EEE tax status, 15-year lock-in). Best for wealth building: ELSS (12-15% historical CAGR, only 3-year lock-in, but LTCG taxable above ₹1 lakh gains). Best for retirement: NPS Tier 1 (9-12% historical CAGR, lock-in until 60, partial taxation on maturity). For most people, a combination of all three is optimal — you don't have to pick just one.

Does NPS give an extra ₹50,000 deduction beyond 80C?

Yes. Section 80CCD(1B) provides an ADDITIONAL ₹50,000 deduction on NPS Tier 1 contributions, OVER AND ABOVE the ₹1.5 lakh 80C cap. So you can claim up to ₹2 lakh total on NPS: ₹1.5 lakh under 80C/80CCD(1) + ₹50,000 under 80CCD(1B). For someone in the 30% tax bracket, this saves an additional ₹15,600 (₹50,000 × 31.2%) in taxes per year.

Is EPF contribution counted in Section 80C?

Yes. The employee's contribution to EPF (Employee Provident Fund) — typically 12% of basic salary — qualifies for Section 80C deduction. For someone earning ₹15 lakh basic, EPF contribution is ₹1.8 lakh per year, which already exceeds the ₹1.5 lakh 80C cap by itself. In this case, additional 80C investments (PPF, ELSS, etc.) would NOT provide further tax benefit. Check your salary slip for the EPF deduction amount before planning additional 80C.

Can I claim home loan principal under 80C?

Yes. Repayment of the principal portion of a home loan EMI is eligible under Section 80C up to ₹1.5 lakh per year. This counts WITHIN the same ₹1.5 lakh aggregate cap (not in addition to). The interest portion is separately deductible under Section 24(b) up to ₹2 lakh per year. Many high-income borrowers find their home loan principal alone uses up the entire 80C cap.

What happens if I exceed ₹1.5 lakh in 80C investments?

Investments above ₹1.5 lakh do not provide additional tax deduction under 80C, but the underlying investment is still valid and earns returns normally. For example, if you invest ₹2 lakh in PPF, only ₹1.5 lakh gets the tax deduction; the remaining ₹50,000 still earns 7.1% interest. To make use of excess capacity, consider Section 80CCD(1B) NPS (extra ₹50,000), Section 80D health insurance (₹25k-1L), and other deductions outside 80C.