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Guide

Section 80C explained for salaried families (2026)

  • 80C
  • tax
  • PPF
  • ELSS
How the ₹1.5 lakh usually fills
  • Your own EPF contribution — already deducted from your salary, often before you invest a rupee
  • Left to place — PPF, ELSS, insurance, tuition, home-loan principal…

Illustrative. Read the EPF line on your payslip before buying anything.

How long each 80C instrument locks your money
ELSS mutual fund3 yrs
5-year tax-saver FD5 yrs
PPF15 yrs
Sukanya Samriddhi21 yrs
NPStill age 60
EPFtill retirement or job change
What the returns look like, and how they are taxed
ReturnTax on returns
EPF~8.25%, EPFO-declaredTax-free, with conditions
PPF~7.1%, scheme rateFully tax-free (EEE)
Sukanya Samriddhi~8.2%, scheme rateFully tax-free (EEE)
ELSSMarket-linkedLTCG over ₹1.25L taxed
NPS (80CCD(1))Market-linkedPartly taxed at exit
Life insurance premiumVaries; term = nonePayout tax-free, with conditions
Tax-saver FDFixed, bank rateInterest fully taxed
Home-loan principal, tuitionNot an investment

Rates are the latest declared per EPFO and the respective small-savings notifications; small-savings rates are reviewed quarterly.

The three mistakes

Double-counting EPF

Your own contribution already eats into the limit. Read the payslip first.

Insurance for the deduction

An endowment bought to save tax usually returns far less than PPF or ELSS. Term insurance protects; it does not need to invest.

Forgetting the regime

On the new regime none of this deducts. Run both before locking money away.

Three separate pools, not one
  • Section 80Cthe shared pool above₹1.5 L
  • Section 80CCD(1B), NPSover and above 80C₹50,000
  • Section 80D, health premiumsseparate, not part of 80Cown limit

All three need the old regime.

The hard part is knowing, in March, how much of the ₹1.5 lakh you have already used across a payslip, a PPF passbook and an ELSS folio. Hundo reconciles those accounts already, so the 80C picture — what is in, what is left, what locks up when — falls out of the same ledger.

See your family’s whole picture in one ledger.

Hundo reconciles every account, watches every renewal, and keeps every document safe. Free while it is in beta.

Free while in beta. No card. A person reads it and replies, usually within two working days.