Find
The most widely claimed deduction in India. One limit of ₹1.5L covers 15+ instruments. Most people fill it with the wrong instruments, choosing low-return products over high-return ones. This is a ₹30,000–46,800 annual tax saving decision.
Advance tax, notices, deductions · Deductions 80C–80U
Section 123 (old 80C): ₹1.5L Deduction (All Instruments)
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 123 (old 80C); Sec 123 (old 80CCC); Sec 124 (old 80CCD(1)); Sec 80CCD(1B); CBDT Notification
Analysis
All instruments under Sec 123, Income-tax Act 2025 (old Sec 80C) and their returns: ELSS mutual funds (market-linked, ~12-14% historical, 3-yr lock-in, best for wealth building) | PPF (7.1% tax-free, 15-yr lock-in, safest) | NPS (Sec 124 (old Sec 80CCD(1)), market-linked, 60% corpus available at retirement) | EPF (employer contribution) | Life insurance premium (term = efficient, endowment = inefficient) | ULIP (combines insurance + investment, high charges) | 5-year tax-saving FD (6-7%, taxable interest) | NSC (7.7%, taxable interest) | Home loan principal repayment (no separate investment needed) | Sukanya Samriddhi Yojana (girl child, 8.2%, EEE) | Senior Citizen Savings Scheme (8.2%, taxable interest) | Children's tuition fees (school fees, not coaching) | Stamp duty on property purchase (one-time, in purchase year). Most efficient Sec 123 (old Sec 80C) instrument: ELSS fund (Equity Linked Savings Scheme). Lock-in: 3 years.
Close
- Confirm old regime is selected (Sec 123 (old Sec 80C) not available in new regime)
- Calculate how much of ₹1.5L is already filled: EPF contribution (from payslip) + any existing LIC premium
- Remaining ₹1.5L gap, fill with most efficient instrument (ELSS for wealth builders, PPF for safety seekers)
- ELSS: Start SIP by April to spread across 12 months. Or lump sum before March 31.
- PPF: Deposit by April 5 each year for full year interest (PPF calculates interest on minimum balance 5th-end of month)
- Collect all Sec 123 (old Sec 80C) proofs: ELSS statement, PPF passbook, LIC receipt, EPF passbook, home loan repayment certificate
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.