How-to Section 80C ELSS deduction

How to claim ELSS Section 80C deduction in ITR

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~4 min.

Key facts

Maximum deduction	Rs 1.5 lakh per FY (combined across 80C instruments)
Tax regime	Available only under old regime; new regime doesn't allow 80C
ITR section	Schedule 80C / 80D and so on
Proof	AMC's 80C-eligible investment certificate; CAS

Section 80C deduction on ELSS is the most popular tax-saving avenue for salaried Indian investors under the old tax regime. The Rs 1.5 lakh annual cap is combined across many instruments; ELSS competes with EPF, PPF, insurance, home loan principal, and others.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned.

Step-by-step procedure

See the procedure infobox above.

Section 80C instruments competing for Rs 1.5 lakh

Instrument	Lock-in	Expected return	Note
ELSS	3 years	Equity-linked	Highest return potential
EPF	Until employment	EPFO rate (~8%)	Mandatory for salaried
PPF	15 years	Govt rate (~7-7.5%)	Long lock-in
Tax-saving FD	5 years	6-7%	Bank deposit
NSC	5 years	~7-7.5%	Post office
Life insurance premium	Policy term	4-6% (often)	Insurance bundled
Home loan principal	n/a	n/a	Recurring deduction
Children’s tuition fees	n/a	n/a	Up to 2 children
Sukanya Samriddhi (girl child)	21 years	Govt rate (~8%)	Long-term

For typical salaried investor: EPF alone often consumes Rs 50-80k of Rs 1.5 lakh cap. Remaining slice for ELSS / others.

Worked example

Salaried investor’s FY 2024-25 80C:

EPF: Rs 60,000 (mandatory).
Home loan principal: Rs 30,000.
Life insurance premium: Rs 12,000.
ELSS investment: Rs 50,000 (decided to fill the rest).

Total: Rs 1.52 lakh. Capped at Rs 1.5 lakh.

Claim Rs 1.5 lakh in Schedule 80C. Tax savings depend on slab:

30% slab: Rs 45,000 (Rs 1.5L × 30%) + cess.
20% slab: Rs 30,000.
5% slab: Rs 7,500.

New vs old regime decision

Per how-to-choose-old-vs-new-regime-mf:

Old regime favoured when:

80C + other deductions > Rs 5 lakh (typical breakeven).
Including HRA, NPS, etc.

For salaried investors with full 80C utilisation + home loan interest deduction + HRA: old regime usually wins.

Proof for ELSS

Document	Purpose
AMC’s 80C investment certificate	Direct proof of ELSS investment
CAS for FY	Shows ELSS subscriptions chronologically
Bank statement	Cross-references actual SIP debits
Form 16 from employer	Includes 80C declaration if you provided to employer

Lock-in importance

ELSS units have 3-year lock-in per installment. Cannot redeem before lock-in expires. Deduction available in year of investment, not at redemption.

If ITR is queried: AMC’s 80C certificate is the primary proof.

External references

References

Income Tax Act, 1961, Section 80C.
Finance Act, 2023 - new regime defaults.
AMFI Best Practice Guidelines on ELSS.

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.