Maximise Section 80C Deductions Before March 2026: Here's How To Do It

Section 80C of the Income Tax Act allows taxpayers to avail deductions of Rs 1.5 lakh during a financial year. Though the 2025-26 financial year has over five months still to go, planning in advance will help you make informed decisions rather than rushing at the last minute.

Here’s how you can maximise your Section 80C deductions before March 2026.

To maximise deductions, try a combination of the following instruments:

• Public Provident Fund (PPF): Tax-free returns with a lock-in period of 15 years.

• Equity-Linked Savings Schemes (ELSS): Higher returns with a lock-in period of three years.

• Tax-Saving Fixed Deposits (FDs): Low-risk instrument with a lock-in period of five years.

• National Savings Certificates (NSC): Government-backed instrument with a tenure of five years.

• Senior Citizens Savings Scheme (SCSS): Gives senior citizens better interest rates at a five-year lock-in.

• Sukanya Samriddhi Yojana (SSY): Best scheme for parents investing for a girl child.

The principal part of home loan repayments is eligible for deduction under Section 80C. Don't forget to claim this deduction by producing the relevant documents to your employer or at the time of filing your income tax return.

A parent can claim deductions under Section 80C for tuition fees paid for up to two children’s full-time education in recognised institutions. This benefit applies only to tuition fees and excludes expenses like development fees, donations or transport charges.

Premiums paid for life insurance policies qualify for deductions under Section 80C. This includes premiums for policies covering self, spouse, children or parents.

In order to claim all the Section 80C qualifying deductions, invest early, ahead of the financial year’s close. Keep receipts and records of all the expenses and investments included under Section 80C.

Maximising Section 80C deductions requires proper planning. By diversifying your investments and using all eligible avenues, you can reduce your taxable income.