Section 80C Deductions (Up to Rs. 1,50,000)
The most popular tax-saving section. You can claim deductions up to Rs. 1,50,000 under the old tax regime for the following investments:
| Investment | Lock-in | Returns | Risk | Best For |
|---|---|---|---|---|
| EPF (Employee PF) | Till retirement | 8.15% | Very Low | All salaried employees |
| PPF (Public PF) | 15 years | 7.1% | Zero (Govt) | Risk-averse investors |
| ELSS Mutual Funds | 3 years | 12-15%* | High | Growth-seeking investors |
| NPS Tier 1 | Till 60 | 8-12%* | Medium | Retirement + extra 50K deduction |
| 5-Year Tax Saver FD | 5 years | 6.5-7.5% | Very Low | Conservative investors |
| NSC (National Savings) | 5 years | 7.7% | Zero (Govt) | Post office investors |
| Sukanya Samriddhi | 21 years | 8.2% | Zero (Govt) | Parents of girl child |
| Life Insurance Premium | Policy term | 4-6% | Low | Already have term insurance |
| Home Loan Principal | Loan tenure | N/A | N/A | Home loan borrowers |
| Children Tuition Fees | N/A | N/A | N/A | Parents (up to 2 children) |
*Returns are market-linked and not guaranteed.
Beyond 80C: Other Deductions
| Section | Deduction | Maximum | Available In |
|---|---|---|---|
| 80CCD(1B) | NPS contribution (extra) | Rs. 50,000 | Both regimes |
| 80D | Health insurance premium | Rs. 25K self + Rs. 25K parents | Old regime |
| 24(b) | Home loan interest | Rs. 2,00,000 | Old regime |
| 80E | Education loan interest | No limit (8 years) | Old regime |
| 80G | Charitable donations | 50-100% of donation | Old regime |
| 80TTA | Savings account interest | Rs. 10,000 | Old regime |
| 80EEB | Electric vehicle loan interest | Rs. 1,50,000 | Old regime |
Tax Saving Strategy by Income Level
Income Rs. 5-10 Lakh
New regime likely better. Zero tax up to Rs. 7.75 lakh (with standard deduction). If old regime, EPF + PPF usually sufficient for 80C.
Income Rs. 10-15 Lakh
Compare both regimes carefully. If you have HRA + 80C + 80D + NPS, old regime could save Rs. 20,000-50,000 over new regime.
Income Rs. 15 Lakh+
Old regime often better with full deductions: 80C (Rs. 1.5L) + NPS 80CCD1B (Rs. 50K) + 80D (Rs. 50K-75K) + HRA (Rs. 1-3L) + 24(b) (Rs. 2L) = Rs. 5.5-7.5L in deductions.
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