Section 80C allows a deduction of up to ₹1.5 lakh a year under the old regime. Under the new regime, most Chapter VI-A deductions including 80C are unavailable, which changes the entire planning question. What qualifies under 80C EPF and VPF contributions, PPF, ELSS mutual funds, life insurance premiums, principal repayment on a home loan, five-year tax-saving fixed deposits, Sukanya Samriddhi, NPS Tier-1 (within the combined limit) and children's tuition fees. Deductions that sit outside 80C 80D for health insurance premiums, 80CCD(1B) for an extra ₹50,000 into NPS, 24(b) for home loan interest, and 80TTA/80TTB on interest income. These are what usually decide the regime comparison. How to choose a regime Add up the deductions you will genuinely claim — not the ones you could theoretically claim. If total deductions plus the standard deduction exceed the breakeven for your slab, the old regime wins; otherwise the new regime's lower rates do. Salaried taxpayers can switch each year; business income has restrictions. Lock-in reality check ELSS has the shortest 80C lock-in at three years. PPF runs 15 years, tax-saving FDs five. Do not buy a 20-year insurance policy to solve a one-year tax problem.
This guide is published for education and research. MoneyMust is not a broker or an investment adviser, and nothing here is a recommendation to buy a specific product.