What items are covered under Section 80C ?

Provident Fund: Provident Fund is automatically deducted from your monthly salary. Both an employee and their employer contribute towards PF. While the contribution made by the employer is exempt from tax, the contribution made by the employee is eligible for deductions under Section 80C of the Income Tax Act. Employees are also allowed to make voluntary contributions towards their Provident Fund Account. Voluntary Provident Fund, or VPF as it is called, is also eligible for tax deductions under Section 80C of the Income Tax Act.

Public Provident Fund: Public Provident Fund is a popular investment instrument as it offers guaranteed returns. Interest is accrued on a yearly basis, and the maturity period of the scheme is 15 years. The minimum you can contribute towards PPF is Rs. 500, and the maximum permitted is Rs. 1.5 lakh. The amount you contribute towards PPF is eligible for tax deductions under Section 80C of the Income Tax Act.

Premium Payments Towards Life Insurance: If you have purchased a Life Insurance Policy for yourself, your children, or your spouse, the premiums you pay towards it are eligible for deductions under Section 80C of the Income Tax Act. If you have multiple life insurance policies from different insurance providers, you can club all of the premiums and claim deductions of up to Rs. 1.5 lakh p.a.

Equity Linked Savings Scheme (ELSS): Certain mutual fund schemes have been designed specifically for the purpose of tax savings. Equity Linked Savings Schemes, or ELSS as they are generally called, allow investors to claim tax deductions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.

National Savings Certificate: National Savings Certificate, or NSC as it is known in its abbreviated form, is one of the most popular tax-saving instruments available to Indian residents. The maturity period of the scheme is five years and ten years. The interest on this scheme is compounded semi-annually. The minimum amount you can invest in this certificate is Rs. 100, and there is no maximum limit on how much you can invest in NSC. The amount you invest in the National Savings Certificate is eligible for tax deductions under Section 80C of the Income Tax Act, subject to a limit of Rs. 1.5 lakh per financial year.

Sukanya Samriddhi Scheme: Individuals can open a Sukanya Samriddhi account for a girl child at any time from the date of her birth up to the day she turns 10 years old. The minimum amount you can invest in the Sukanya Samriddhi scheme is Rs. 1,000, and the maximum is limited to Rs. 1.5 lakh in a financial year. The interest in this account is calculated annually and compounded annually as well. The interest you accrue through this scheme is eligible for tax deductions under Section 80C of the Income Tax Act.

Unit Linked Insurance Plans (ULIPs): These insurance plans offer coverage to the policyholder and provide significant returns over the long term. One of the main reasons why these plans have become so popular in recent years is the fact that they help in setting aside money, while also providing tax benefits under Section 80C of the Income Tax Act.

Repayment of Home Loan Principal Amount: The EMI amount that goes towards the repayment of the principal amount on your home loan is also eligible for tax deductions under Section 80C of the Income Tax Act. The repayment of your home loan amount has two components, viz. the principal amount and the interest. While the interest portion of the repayment cannot be claimed as a deduction under Section 80C of the Income Tax Act, the repayment of the principal amount certainly can be.

Registration Charges and Stamp Duty for a Home/Property: If you purchase a home or a property and pay for stamp duty and registration, these amounts can be claimed as tax deductions under Section 80C of the Income Tax Act.

Infrastructure Bonds: Infra bonds, as they are commonly called, are issued not by the government but rather by infrastructure companies. If you invest in these bonds, you can claim tax deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.

NABARD Rural Bonds: NABARD, or the National Bank for Agriculture and Rural Development, offers two types of bonds — NABARD Bhavishya Nirman Bonds and NABARD Rural Bonds. However, only the latter qualifies for tax deductions under Section 80C of the Income Tax Act, and the maximum amount you can claim as a deduction is Rs. 1.5 lakh.

Key Takeaway: Across all these instruments, the overall deduction under Section 80C is capped at ₹1.5 lakh per financial year — not ₹1.5 lakh per instrument. Combining PF, PPF, ELSS, life insurance premiums, home loan principal, and other eligible investments, the total claim across all of them together cannot exceed this limit. It's also worth noting that Section 80C deductions are available only under the old tax regime; the new tax regime does not permit these deductions.