Section 80C Calculator (Section 123 Tax-Saving Planner)
Add up what already counts towards your ₹1.5 lakh limit, such as EPF, life insurance, home loan principal and tuition fees, to see how much is left, how much tax filling it saves, and, before you invest, whether the old regime is actually cheaper for you in Tax Year 2026-27.
Already counting towards ₹1.5 lakh this year
You have ₹86,800 left of the ₹1.5 lakh limit. But even with the full ₹1.5 lakh and ₹50,000 in NPS, the old regime costs ₹35,100 more than the new regime, so investing only to save tax does not pay. Stay in the new regime and invest for your goals instead.
Section 123 of the Income-tax Act, 2025 covers what was 80C, 80CCC and 80CCD(1), up to ₹1.5 lakh in total, in the old regime only. Tax includes rebate, surcharge and 4% cess. Checked 2026-10-23.
What is Section 80C now?
From 1 April 2026, Section 80C is Section 123 (formerly 80C) of the Income-tax Act, 2025: a deduction of up to ₹1.5 lakh a year for investments and payments listed in Schedule XV, in the old regime only. The same ₹1.5 lakh also covers what were 80CCC (pension plans) and 80CCD(1) (your own NPS contribution). A further ₹50,000 of your own NPS contribution is allowed on top.
Does 80C still save you tax?
Only if the old regime is cheaper for you after all your deductions. If the new regime is still cheaper, an 80C investment saves nothing. Most salaried people under ₹12.75 lakh pay no tax in the new regime, so 80C cannot help them.
| ₹15 lakh salary, ₹63,200 already in 80C | Old regime, before | Old regime, ₹1.5 lakh + ₹50,000 NPS | New regime |
|---|---|---|---|
| With ₹2 lakh of other deductions | ₹1,75,282 | ₹1,32,600 | ₹97,500: new wins |
| With ₹4 lakh of other deductions (HRA, home loan interest) | ₹1,14,254 | ₹85,800: old wins | ₹97,500 |
In the first case, filling 80C saves ₹27,082 compared with the old regime, but the person would still pay ₹35,100 more than in the new regime, so the investment saves no tax at all. Check your break-even in the Old vs New Tax Regime Calculator.
What already counts towards ₹1.5 lakh
- Your EPF and VPF contributions: 12% of basic, so ₹43,200 on a ₹30,000 basic, ₹72,000 on ₹50,000.
- Life insurance premiums for yourself, your spouse and children (up to 10% of the sum assured for policies since April 2012).
- Home loan principal repaid, and stamp duty and registration in the year you buy.
- Children’s tuition fees, for up to two children, paid to a school, college or university in India.
- Pension plans of insurers and your own NPS contribution.
Many people with a home loan or a ₹50,000 basic have little or nothing left to invest.
80C investments compared
| Investment | Return now | Lock-in | Tax on returns | Best for |
|---|---|---|---|---|
| ELSS mutual funds | Market-linked | 3 years | 12.5% above ₹1.25 lakh of gains a year | Growth, shortest lock-in |
| PPF | 7.1% | 15 years | Tax-free | Long-term, guaranteed |
| Sukanya Samriddhi | 8.2% | Till she is 21 (partial at 18) | Tax-free | Daughter under 10 |
| NSC | 7.7% | 5 years | Taxable; reinvested interest deductible | 5-year guaranteed |
| Post office 5-year deposit / bank tax-saver FD | 7.5% / bank rate | 5 years | Taxable every year | Regular interest |
| SCSS | 8.2% | 5 years | Taxable | Aged 60+ |
| NPS (own contribution) | Market-linked | Till 60 | Part tax-free at exit | Retirement, plus the extra ₹50,000 |
| Life insurance, ULIPs | Usually 4–6% (endowment) | 5 years or more | Varies | Only if you need the cover |
How much tax 80C saves
| Your slab (old regime) | ₹1.5 lakh saves | Extra ₹50,000 in NPS saves |
|---|---|---|
| 5% | ₹7,800 | ₹2,600 |
| 20% | ₹31,200 | ₹10,400 |
| 30% | ₹46,800 | ₹15,600 |
Including 4% cess; higher with surcharge above ₹50 lakh. If a deduction takes your taxable income to ₹5 lakh or less, the rebate makes the tax nil.
How to choose
- Need the money in 3 to 5 years? ELSS if you can take market risk; NSC or a 5-year deposit if not.
- Saving for 15 years or retirement? PPF for a guaranteed tax-free return, NPS for the extra ₹50,000.
- Daughter under 10? Sukanya Samriddhi pays 8.2%, tax-free.
- 60 or older? SCSS at 8.2% with quarterly income.
- Invest monthly, not in March: an ELSS SIP or PPF deposits before the 5th of each month earn more than a lump sum at the deadline.
Deadlines and proofs
Invest by 31 March. Submit proofs to your employer when asked, usually in January or February. If you miss the employer’s deadline, more TDS is deducted, but you can still claim the deduction in your return and get the difference back. Tell your employer at the start of the year that you want the old regime, or TDS is deducted under the new one.
When to use a different calculator
- Which regime is cheaper overall? Use the Old vs New Tax Regime Calculator.
- Your full tax for the year? Use the Income Tax Calculator.
- How much of your HRA is tax-free? Use the HRA Exemption Calculator.
- Growing an ELSS SIP? Use the SIP Calculator.
Sources
- Income Tax Department: Income-tax Act, 2025 and Schedule XV (Government of India)
- Section 80C becomes Section 123 from 1 April 2026 (Business Today)
- Section 123 of the Income-tax Act, 2025 (ClearTax)
- Small savings interest rates for October–December 2026 (Free Press Journal)
This is general information, not tax or investment advice. See how we check rates and our corrections log.
