Question 1

What is the Section 80C deduction limit in 2026?

Accepted Answer

The Section 80C deduction limit remains at ₹1,50,000 per financial year under the old tax regime. This includes investments in PPF, ELSS, SSA, NSC, life insurance premiums, EPF contributions, and tax-saver FDs.

Question 2

Which investments qualify under Section 80C?

Accepted Answer

Section 80C eligible investments include PPF, ELSS mutual funds, 5-year tax-saver FD, SSA, NSC, NPS (additional ₹50,000 under 80CCD), life insurance premiums, EPF/VPF contributions, home loan principal repayment, and children's tuition fees.

Question 3

Is 80C available in the new tax regime?

Accepted Answer

No, Section 80C deductions are not available under the new tax regime introduced in Budget 2020 and made default from FY 2023-24. Only the old tax regime allows 80C deductions.

Question 4

How much tax can I save with 80C?

Accepted Answer

The maximum tax saving under Section 80C depends on your tax bracket. At the 30% slab, you can save up to ₹46,800 (including 4% cess) by fully utilizing the ₹1.5 lakh limit.

Question 5

What is the best 80C investment for 2026?

Accepted Answer

The best 80C investment depends on your goals: ELSS for high returns (3-year lock-in), PPF for guaranteed tax-free returns (15-year lock-in), and SSA for a girl child's future. Diversifying across 2-3 options is recommended.

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