80C Deduction Optimiser – Maximise ₹1.5L Section 80C India

Frequently asked questions

Does 80C apply under the new tax regime?+

No. Section 80C deductions are only available under the old regime. Under the new regime, there's no 80C. Many taxpayers still find the new regime cheaper because of the 0% slab up to ₹12L, lower slab rates, and ₹75k standard deduction.

Which 80C instrument should I fill first?+

EPF employee contribution is automatic – it already counts. After that: home-loan principal (free money, you're paying anyway); ELSS for equity exposure (3-year lock, 12-14% expected CAGR); PPF for safety (15-year lock, 7.1% tax-free); SSY for daughters under 10 (8.2% tax-free, 21-year tenure).

What's the maximum tax I can save via 80C?+

At 30% old-regime slab, the full ₹1.5L deduction saves ₹46,800 (including 4% cess). At 20% slab it's ₹31,200. At 5% slab it's ₹7,800. Below that, 80C gives no further benefit because you're not being taxed.

Does LIC / endowment plan count toward 80C?+

Yes, premiums up to ₹1.5L/year qualify. But most endowment plans yield 4-6% returns over 20 years, which barely beat inflation. Buy pure term insurance for protection (premium is 80C-eligible) and put the rest in ELSS/PPF, not endowment.

Can I invest more than ₹1.5L in 80C instruments?+

You can, but tax savings cap at ₹1.5L. Extra PPF contributions up to ₹1.5L/year are still allowed (for the corpus), just no further tax break. For more tax-advantaged investing, look at NPS u/s 80CCD(1B) (+₹50k) and equity MFs outside 80C.