80C Deduction Calculator

## What is the 80C Deduction Calculator? The Section 80C Deduction Calculator helps you sum up all eligible investments and payments under Section 80C of the Income Tax Act to calculate your total deduction, capped at Rs 1.5 lakh per financial year. Section 80C covers popular instruments like EPF, PPF, ELSS mutual funds, NSC, LIC premiums, tuition fees, home loan principal repayment, and more. ## Formula Used Total 80C Deduction = Sum of all eligible investments/payments Maximum deduction cap: Rs 1,50,000 per financial year Tax savings at different slabs: - 5% bracket: Rs 7,500 per Rs 1.5 lakh saved - 20% bracket: Rs 30,000 per Rs 1.5 lakh saved - 30% bracket: Rs 46,800 per Rs 1.5 lakh saved ## Worked Example EPF: Rs 60,000 + PPF: Rs 50,000 + ELSS: Rs 25,000 + LIC: Rs 15,000 + Home loan principal: Rs 1,00,000 Total 80C Deduction = Rs 2,50,000 - capped at Rs 1,50,000 Tax saved at 30% slab (income above Rs 15L): Rs 1,50,000 x 30% = Rs 46,800 Tax saved at 20% slab (Rs 10L to Rs 15L): Rs 1,50,000 x 20% = Rs 30,000 ## Frequently Asked Questions 1. What is the maximum deduction under Section 80C? The maximum deduction under Section 80C is Rs 1,50,000 per financial year. This is a combined limit for all investments and payments listed under this section. 2. What investments are covered under Section 80C? Section 80C covers: EPF, PPF, VPF, NPS (up to Rs 50,000 under 80CCD(1b)), ELSS mutual funds, NSC, tax-saving FD (5-year), LIC premium, home loan principal repayment, tuition fees (max 2 children), and Sukanya Samriddhi Yojana. 3. Can I claim 80C for my parents insurance premium? No, you can only claim 80C for premiums paid for yourself, your spouse, or your children. Premiums for parents are not eligible under 80C. 4. Is NPS contribution fully covered under 80C? Only up to Rs 50,000 of NPS contribution qualifies under 80CCD(1b) within the Rs 1.5 lakh 80C limit. 5. Is Section 80C available in the New Tax Regime? No, Section 80C and most other deductions are NOT available under the New Tax Regime (except 80CCD(1b) for NPS and a few specific exemptions).