80C Deduction List: What Comes Under Section 80C in 2025

As the financial year ends, all of us are a bit tense about our taxes. So, to make things easier, understanding tax-saving options like  Section 80C of the Income Tax Act can help you plan better. 

And if you know what qualifies under this 80C deductions list, you can make a smart financial choice and lower your tax liability. 

What is Section 80C of the Income Tax Act?

Section 80C of the income tax act allows taxpayers to claim deductions on a variety of investments and expenses. The aim is to encourage savings and long-term planning while offering tax relief. Individuals and Hindu Undivided Families (HUFs) can benefit from this provision, with a maximum deduction of ₹1,50,000 in a financial year. 

This deduction covers a wide range of options such as retirement savings, insurance premiums, education expenses, home loan repayments, and much more. It is a simple and effective way to lower your taxable income while building your future financially. 

Who can Claim Section 80C Deductions? 

If you are earning taxable income, then you can claim deductions under Section 80C. This includes all the salaried professionals, self-employed individuals, and professionals. Resident individuals and HUFs are eligible to benefit from this deduction, provided if they submit proper documentation while filing income tax returns. 

How to Claim Section 80C Deductions? 

To claim your deductions under Section 80C, you must maintain supporting documents like receipts, certificates, and account statements. The total claimable amount must not exceed ₹1,50,000 in a financial year. So if you file your return file with the right documents, you can claim the deduction without any further issues. 

Tax-Saving Options Under Section 80C

So, you are now aware of what exactly is Section 80C, and who can claim it. Now let’s learn more about what options are actually considered under this Section 80C, their eligibility criteria, and some tax benefit saving options. 

Equity Linked Saving Scheme (ELSS)

Equity Linked Saving Scheme (ELSS) is a mutual fund investment. They mainly focus on equity-related instruments. They have a lock-in period of 3 years, offering a better return as compared to other traditional options. Now, it is related to mutual funds, so it means that market risks are involved here. It will be beneficial to you only if you consider it for your long-term planning, as you can use it as a source for wealth creation or a retirement option. 

Now, let’s have a glance at some of the important points from this scheme:

1. Tenure: 3 years lock-in 
2. Tax Benefit: Eligible under Section 80C
3. Interest Rate: Market-linked, so it has higher potential returns
4. Ideal for: Individuals aiming for wealth creation with moderate risk capacity

Public Provident Fund (PPF)

Public Provident Fund (PPF) is the scheme that almost everyone has heard of. It is a government-backed scheme. This scheme offers assured returns and has a tax-free interest too. With a tenure of 15 years, investors have a better option for building a corpus for retirement or any other long-term needs, while getting exempted from taxes. It is considered one of the safest options for savings. 

Now, let’s skim through some important points:

1. Tenure: 15 years lock-in
2. Tax Benefit: Eligible under Section 80C
3. Interest Rate: Compounded tax-free interest annually 
4. Ideal for: Individuals aiming for long-term investments with guaranteed returns

Life Insurance Premium 

Life Insurance Premium is something that almost everybody has, but apart from only covering your family and medical or any other expenses, it also allows you to enjoy tax-free benefits on the amounts. It does not offer investment returns, but it provides essential financial protection to your family in unforeseen circumstances. 

Here is information at a glance:

1. Tenure: Varies based on what policy you have
2. Tax Benefit: Premiums are eligible under Section 80C
3. Interest Rate: Not applicable, but it provides risk cover
4. Ideal For: Individuals securing family’s future financially

Tax-Saving Fixed Deposit

Tax-saving fixed deposits offer fixed returns for a period of five years. Though the interest earned is taxable, the principal amount qualifies for deduction under Section 80C. It’s ideal for individuals prioritising safety over high returns.

1. Tenure: 5 years lock-in
2.  Tax benefit: Principal eligible under Section 80C
3.  Interest: Fixed and taxable at maturity
4.  Ideal for: Conservative investors seeking secure returns

Employees’ Provident Fund / Voluntary Provident Fund (EPF / VPF)

Contributions made to EPF and additional investments into VPF help build retirement savings while offering tax benefits. EPF is a mandatory contribution for salaried employees, whereas VPF allows extra voluntary contributions to enhance savings.

1. Tenure: Until retirement or withdrawal
2.  Tax benefit: Eligible under Section 80C
3.  Interest: Compounded annually and tax-free up to limits
4.  Ideal for: Salaried employees building retirement savings

National Savings Certificate (NSC)

National Savings Certificates are fixed-income investments guaranteed by the government. They offer assured returns, making them a safe option for individuals who prefer stability in their portfolio while benefiting from tax deductions.

1. Tenure: 5 years
2. Tax benefit: Eligible under Section 80C
3. Interest: Compounded annually but taxable at maturity
4. Ideal for: Risk-averse investors seeking government-backed returns

Home Loan Principal Repayment

Repayment of the principal amount of a home loan qualifies for a deduction under Section 80C. It supports families aiming to invest in property while lowering their annual tax burden.

1. Tenure: Loan duration
2. Tax benefit: Eligible under Section 80C
3.  Interest: Not applicable for principal
4. Ideal for: Homeowners reducing taxable income while repaying loans

Tuition Fees

Tuition fees paid to recognised educational institutions for up to two children can be claimed as a deduction. It helps ease the cost of schooling while allowing families to plan their finances without extra strain.

1. Tenure: Academic year
2. Tax benefit: Eligible under Section 80C for up to two children
3.  Interest: Not applicable
4. Ideal for: Parents planning for children's education

Sukanya Samriddhi Yojana (SSY)

The c is a government scheme designed specifically for the welfare of girl children. It offers attractive interest rates and tax-free returns. Parents can invest in this scheme to secure funds for their daughter’s education and marriage while enjoying tax benefits and long-term growth.

1. Tenure: Until the girl child turns 21
2. Tax benefit: Eligible under Section 80C
3. Interest: Compounded annually and tax-free
4. Ideal for: Parents saving for their daughters’ future needs

How These Options Help You Save Tax

Selecting the right combination of instruments from the 80C deduction list allows you to not only lower your tax liability but also build wealth for the long term. A diversified investment approach spreads risk and ensures that you are covered for multiple financial goals like education, retirement, or emergency funds.

It is important to review your investments and expenses periodically. By planning early and investing consistently, you can make the most of the available tax benefits while working towards your financial objectives.

Planning for a Tax-Efficient Future

Section 80C is one of the simplest yet most powerful ways to save on taxes while investing in your future. From ELSS to SSY, each option serves a specific purpose and caters to different needs. Whether you are planning for retirement, education, or homeownership, choosing the right instruments helps you stay financially secure.

Start by reviewing your current investments and expenses to make sure you’re making full use of the ₹1,50,000 deduction limit. Keep your documents organised and stay disciplined in your investment approach. With careful planning, you can reduce your tax burden and achieve long-term financial stability.

Disclaimer: The information provided is intended for general informational purposes only. For personalised recommendations, please consult a certified insurance professional.

ARN:SLIC/Elec/Sep 2025/1146