Section 80C Guide: Best Ways to Save ₹46,800 in Tax
Compare all 80C options — EPF, PPF, ELSS, LIC, FD, NSC, tuition fees — and build the perfect ₹1.5 lakh tax-saving portfolio.
13 Aug 20268 min read
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Section 80C lets you save up to ₹46,800 in tax (at 30% slab) by investing ₹1.5 lakh in specified instruments. But not all 80C options are equal.
The Best 80C Options Ranked
| Option | Lock-in | Returns | Risk | Verdict |
|---|---|---|---|---|
| ELSS Mutual Fund | 3 years | 12-15% | Market risk | Best overall |
| EPF | Till retirement | 8.15% | Zero | Auto-deducted, guaranteed |
| PPF | 15 years | 7.1% | Zero | Best for safety |
| NPS (80CCD) | Till 60 | 8-12% | Low-Medium | Extra ₹50K deduction |
| 5Y Tax FD | 5 years | 6-7% | Zero | Worst returns, only if needed |
| LIC/Endowment | 10-20 years | 4-5% | Zero | Avoid — poor returns |
Suggested ₹1.5 Lakh Split
- EPF: ~₹50,000-70,000 (auto-deducted from salary)
- ELSS SIP: ₹50,000-80,000 (best growth + shortest lock-in)
- PPF: ₹20,000-50,000 (safety + guaranteed returns)
- Term insurance premium: ₹8,000-15,000 (also qualifies under 80C)
Pro tip: If your EPF already covers ₹50,000+, you only need ₹1 lakh more. Put it all in ELSS via monthly SIP — you get the best returns with the shortest lock-in (3 years vs 15 for PPF).
80Ctax savingPPFELSSEPF
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This article is for informational and educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified professional before making financial decisions.