Don't leave money on the table
Think of Section 80C as a single basket. The government says: put up to ₹1.5 lakh of approved investments and expenses into this basket, and we will not tax that part of your income. That is the 80C basket — one combined ceiling of ₹1.5 lakh, no matter how many products you use.
This benefit applies only if you file under the Old Tax Regime (the regime that allows deductions). In the New Regime, 80C is switched off. Most people fill the basket with just EPF and a LIC premium and stop there — and quietly leave tax savings unclaimed.
The 80C number you should remember
Section 80C cap: ₹1,50,000 per person, per year (Source: Section 80C, Income Tax Act, 1961).
| What goes in the 80C basket | Type |
|---|---|
| EPF / VPF employee contribution | Investment |
| PPF, ELSS, NSC, tax-saving FD | Investment |
| Children's tuition fees (max 2 kids) | Expense |
| Home loan principal repayment | Expense |
| Stamp duty and registration | Expense |
Everything above shares the same ₹1.5 lakh limit. A ₹50,000 EPF plus ₹60,000 tuition plus ₹40,000 PPF already fills it.
The common 80C investments
- EPF (Employees' Provident Fund): your 12% monthly salary contribution counts automatically.
- PPF (Public Provident Fund): safe, tax-free returns, 15-year lock-in.
- ELSS (Equity Linked Savings Scheme): tax-saving mutual funds with a 3-year lock-in.
- Life insurance premiums: for yourself, spouse, and children.
- Tax-saving FDs: 5-year fixed deposits from banks or post offices.
The expenses people forget
You do not always need fresh investments — money you already spent can count:
- Children's tuition fees paid to any Indian school, college, or university (max two children).
- Home loan principal portion of your EMI.
- Stamp duty and registration charges on a house bought this year.
- ULIPs (insurance-cum-investment plans).
- NSC, the 5-year post office certificate.
Specialised options
- Sukanya Samriddhi Yojana for a girl child.
- Senior Citizen Savings Scheme for those above 60.
- NABARD bonds.
- Post Office Time Deposit (5-year tenure).
- Deferred annuity (pension) plans.
What you should do
- Open your latest salary slip and note your yearly EPF — that is already inside the basket.
- Add tuition fees, home loan principal, and any PPF or ELSS you paid before 31 March.
- Stop once the total hits ₹1.5 lakh; anything beyond gives no extra 80C benefit.
Common mistake
Investing more than ₹1.5 lakh expecting more deduction. Putting ₹2 lakh into PPF does not give a ₹2 lakh deduction — the basket caps at ₹1.5 lakh. The extra ₹50,000 still gets locked in, just without tax benefit.
How LastMinute ITR helps
Not sure if your basket is full? When you upload your Form 16, LastMinute ITR reads your EPF figure, flags 80C room you may have missed, and compares old vs new regime so you do not over-claim under a regime where 80C does not even apply. See all your deduction entries in one place before you file on incometax.gov.in. We are a filing companion — you submit and e-verify on the government portal.