Section 80C Deductions List FY 2025-26: Eligible Investments

Section 80C (Section 123 of the Income-tax Act, 2025) is the most used deduction in the old tax regime, letting individuals and HUFs cut taxable income by up to ₹1,50,000 per year. For FY 2025-26 (AY 2026-27) it remains available only if you opt for the old regime, because the new regime under section 115BAC does not allow it. Here is the full list of eligible investments and expenses.

80C at a Glance for FY 2025-26

• Maximum deduction: ₹1,50,000 per year for individuals and HUFs.
• Availability: old regime only; not allowed under the new regime for FY 2025-26.
• Covered items: specified investments, insurance premiums, tuition fees and home loan principal repayment.

Many taxpayers stack several smaller items to reach the ceiling. Life insurance premiums, the provident fund deduction from salary and school tuition fees often cover most of the limit without any fresh investment. Plan the mix with our section 80C deduction planner.

Complete List of Eligible 80C Investments and Payments

• Public Provident Fund (PPF) contributions in your own name or a child’s account.
• Equity Linked Savings Schemes (ELSS) of mutual funds.
• Life insurance premium for self, spouse or children, including LIC policies.
• The employee’s own share of contribution to EPF.
• Principal repayment of a home loan, excluding the interest component.
• Five-year tax-saver fixed deposits with banks and post offices.
• National Savings Certificates (NSC).
• Sukanya Samriddhi Yojana (SSY) deposits for a girl child.
• Tuition fees paid for full-time education of up to two children.

The home loan principal you repay each year counts toward 80C, while the interest portion belongs to section 24(b). Check your annual loan statement to split the two amounts correctly. Project PPF growth separately using our PPF calculator.

What 80C Does Not Cover

Several popular payments fall outside 80C despite common belief. The interest component of EMIs, premiums for general insurance and investments held in someone else’s name do not qualify. Mutual fund schemes other than ELSS also stay outside this section. Health insurance belongs to section 80D, not 80C.

80C Is Unavailable in the New Regime

Under section 115BAC, the new regime for FY 2025-26 offers lower slabs and a ₹75,000 standard deduction but drops 80C entirely. Taxpayers who have locked money into PPF or tax-saver deposits still hold those investments; they simply cannot claim the deduction while choosing the new regime. Run both regimes through our comparison before locking fresh money into 80C products.

Documentation to Keep Ready

Keep formal proofs rather than screenshots of apps: premium receipts, PPF and SSY account statements, fixed deposit receipts, NSC certificates, school fee receipts and the home loan principal certificate from your lender. Employers ask for these during investment proof submission, and organised records make verification painless. Preserve them for the assessment window of the relevant year.

Key Takeaways

• 80C allows up to ₹1,50,000 of deductions per year, old regime only for FY 2025-26.
• PPF, ELSS, LIC, the EPF employee share, home loan principal, tax-saver FDs, NSC, SSY and tuition fees all qualify.
• Home loan principal counts under 80C while interest falls under section 24(b).
• The new regime under 115BAC does not permit 80C at all.
• Keep receipts and account statements, not app screenshots, as documentation.

Frequently Asked Questions

Can I claim 80C in the new tax regime for FY 2025-26?

No. Section 115BAC (Section 202 of the Income-tax Act, 2025) excludes 80C from the new regime altogether. Only the ₹75,000 standard deduction and the employer NPS benefit under 80CCD(2) survive for salaried taxpayers.

Do PPF and Sukanya Samriddhi share the same limit?

Yes. All 80C items share one ceiling of ₹1,50,000 per year. Claiming PPF and SSY together means their combined total, not each separately, is capped at the limit.

Is the home loan principal really eligible?

Yes, the principal portion of each EMI qualifies under 80C. The interest portion is claimed separately under section 24(b). Your lender’s annual statement splits the two amounts.

Are tuition fees fully deductible?

Tuition fees for full-time education of up to two children qualify within the 80C ceiling. Development charges or donations levied by schools may not qualify. Keep fee receipts that separate tuition from other heads.

What happens to my 80C investments if I switch to the new regime?

The investments continue to earn as usual. You lose the deduction only for years in which you opt for the new regime, and you can claim 80C again in any year you return to the old regime.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.