Section 80C of the Income Tax Act allows you to claim deductions up to ₹1.5 lakh per year on specified investments. For someone in the 30% tax bracket, this saves ₹46,800 in taxes (including cess). Here's how to maximise it.

All 80C Investment Options

Investment	Lock-in	Returns	Risk
EPF (Employee Provident Fund)	Till retirement	8.25%	Zero
PPF (Public Provident Fund)	15 years	7.1%	Zero
ELSS (Equity Linked Saving Scheme)	3 years	12-15%	High
NPS (National Pension System)	Till 60	8-10%	Medium
NSC (National Savings Certificate)	5 years	7.7%	Zero
SCSS (Senior Citizens)	5 years	8.2%	Zero
5-Year Tax Saver FD	5 years	6.5-7%	Zero
Life Insurance Premium	Policy term	4-6%	Zero
Sukanya Samriddhi	21 years	8.2%	Zero
Tuition Fees (2 children)	N/A	N/A	N/A
Home Loan Principal	N/A	N/A	N/A

Best Strategy for Salaried Employees

Most salaried employees already use a chunk of 80C through EPF (12% of basic). If your basic is ₹50,000, EPF contribution is ₹6,000/month = ₹72,000/year. Remaining 80C space: ₹78,000.

Optimal allocation:

• EPF: ₹72,000 (automatic)
• ELSS SIP: ₹50,000 (₹4,167/month — lowest lock-in, highest returns)
• PPF: ₹28,000 (safe, tax-free returns)

Total: ₹1,50,000. Done.

Beyond 80C — Extra Deductions

• 80CCD(1B): Additional ₹50,000 for NPS — saves ₹15,600 extra
• 80D: Health insurance premium — up to ₹25,000 (₹50,000 for seniors)
• 24(b): Home loan interest — up to ₹2,00,000
• 80E: Education loan interest — no upper limit

Common Mistakes

• Buying insurance just for tax saving (ULIPs, endowment plans give poor returns)
• Last-minute investing in March without research
• Not claiming tuition fees deduction for children
• Forgetting that EPF already counts toward 80C

Plan your tax-saving investments alongside retirement with TheFinWay's retirement calculator.