Tax Saving Calculator – India (Current Financial Year)
Calculate your potential tax savings under various sections of the Income Tax Act
What is Tax Saving?
Tax saving refers to legally reducing your taxable income through investments and expenses allowed under the Indian Income Tax Act.
Sections Calculated:
- 80C: Up to ₹1,50,000 (PPF, EPF, ELSS, LIC, etc.)
- 80D: Health insurance (₹25,000/₹50,000)
- 80CCD(1B): NPS additional deduction ₹50,000
- 24(b): Home loan interest up to ₹2,00,000
- 80G: Donations (50% or 100% eligible)
- Other sections: 80E, 80TTA/B, Standard Deduction
Note: Calculations are based on official Income Tax rules for FY 2024-25 (AY 2025-26).
Choose Your Tax Regime
Tip: Old regime allows deductions; New regime has lower tax rates but fewer deductions.
Maximum allowable deduction: ₹1,50,000. Excess amount will not be considered for tax saving.
Maximum deductible: ₹2,00,000 per financial year
Maximum deductible: ₹50,000 per financial year
80TTA (Non-Seniors): ₹10,000 max | 80TTB (Seniors): ₹50,000 max
Your Tax Savings Calculation
Based on the information you provided
Total Tax Saved This Financial Year
Tax Regime Recommendation
Based on your inputs, the Old Tax Regime is better for you as it provides more deductions.
Total Deductions (Old Regime)
Tax Before Deductions
Tax After Deductions
Section 80C Savings
Section 80D Savings
Home Loan Interest (24b)
Tax Before vs After Savings
💡 Tips to Save More Tax
Maximize Section 80C
Utilize the full ₹1,50,000 limit through a combination of PPF, ELSS, life insurance, and 5-year FDs. ELSS funds have the shortest lock-in period of 3 years among 80C options.
Optimize Health Insurance
If your parents are senior citizens, you can claim up to ₹50,000 for their health insurance under Section 80D. Don’t forget the ₹5,000 for preventive health check-ups.
Consider NPS for Additional Savings
Apart from the ₹1.5 lakh under 80C, you can invest an additional ₹50,000 in NPS under Section 80CCD(1B) for extra tax savings.
How to Use This Tax Saving Calculator
Using this tax saving 80C calculator on AllTaxCalculator.in is very easy and helps you see how much tax you can save with Section 80C and related deductions. Just follow these simple steps:
- Enter Your Total Income:
First type your annual total income from salary, business, or other sources. This helps the tool know how much you earn in a year. - Choose Financial Year and Status:
Select the correct financial year for which you want to calculate tax. Then pick whether you are an Individual or HUF (Hindu Undivided Family). - Fill in 80C Investments and Expenses:
In the fields provided, enter the amounts you have invested or paid for tax saving options under Section 80C. For example, put the amount you spent on:- Life insurance premiums
- Employee or Public Provident Fund (EPF/PPF)
- Equity Linked Saving Schemes (ELSS)
- National Savings Certificate (NSC)
- Principal repayment of home loan
- Tuition fees for children
- Review the Total Deduction:
The calculator will add up your eligible 80C amounts (up to ₹1.5 lakh) and show how much deduction you can claim. This lowers your taxable income. - See Your Tax Savings Result:
After entering all data, the tax saving calculator will display how much tax you may save based on your investments and deductions. You can adjust numbers to plan better.
This easy process helps you understand your tax savings clearly and plan where to invest for maximum benefit with the least effort.
What is 80C Deduction in tax saving calculator
80C deduction is a rule in the Indian Income Tax Act that lets you reduce your taxable income by putting money into certain investments or expenses. If you put money in eligible options like PPF, ELSS funds, life insurance, or pay the principal on your home loan, that amount gets deducted from your total income before tax is calculated. This means you pay less income tax overall. The maximum you can claim under Section 80C is ₹1,50,000 in a financial year. Using a tax saving 80C calculator can help you see how much tax you save by using this 80C deduction.
80C Deduction List
Here are common things people can use to claim the 80C deduction and save tax:
- ELSS funds – tax saving mutual funds.
- Public Provident Fund (PPF) – government savings scheme.
- Life insurance premium – amount you pay for life cover.
- National Savings Certificate (NSC) – post office saving plan.
- Sukanya Samriddhi Yojana (SSY) – saving for girl child.
- Home loan principal repayment – part of your home loan you paid back.
- Tuition fees for up to 2 children.
All these help reduce your taxable income up to the 80C limit of ₹1.5 lakh. A tax saving calculator makes it easier to check how these choices affect your tax savings.
What is Equity Linked Saving Schemes (ELSS) And ELSS Funds
Equity Linked Saving Schemes (ELSS) are a type of mutual fund where most of your money goes into stocks and shares. ELSS funds not only help you save tax under Section 80C, but also give you a chance to grow your money over time. These funds have a lock-in period of 3 years, which is shorter than many other 80C options. People like ELSS because they can save tax and also get potentially higher returns from the market. When you use a tax saving calculator, you can see how ELSS investments lower your tax and how much you might save.
Various Tax Saving Options
There are many options to save income tax in India beyond Section 80C alone. Under 80C you have choices like PPF, ELSS, NSC, and life insurance. Other sections of tax rules also give benefits, like Section 80D for health insurance premiums or Section 80CCD for extra pension deductions. But focusing on 80C options is usually the easiest way for most people to cut their taxable income. A tax saving calculator helps you compare these tax saving options and choose the best ones based on your income and goals.
How Tax Saving Works with Section 80C & ELSS
Tax saving with Section 80C works by lowering your taxable income. For example, if your income is ₹9,00,000 and you invest ₹1,50,000 in ELSS or other 80C options, your taxable income becomes ₹7,50,000. Because your tax is calculated on the lower income, you pay less tax overall. The tax saving calculator takes your income, your investments under 80C (including ELSS), and tells you exactly how much tax you save. This makes planning your investments easier and clearer.
Benefits of Using a Tax Savings Tool
A tax saving calculator gives you a clear picture of how much tax you can save by using Section 80C and other deductions. Instead of doing the math yourself, the tool tells you instantly how your investments reduce your tax bill. It also helps you compare different tax saving options, like ELSS vs PPF, so you can choose what works best for your life and goals. This makes tax planning easier and helps you save money smartly.
FAQs
1. What is Section 80C deduction and its limit?
Section 80C allows deductions up to ₹1.5 lakh on investments like ELSS, PPF, EPF, LIC, and fixed deposits. Use a tax saving calculator to estimate how much you can save by inputting these amounts, ensuring you maximize benefits under the old tax regime.
2. What are ELSS funds and how do they help in tax saving?
ELSS (Equity Linked Savings Schemes) are mutual funds investing in equities, qualifying for ₹1.5 lakh deduction under Section 80C. They have a 3-year lock-in. A tax saving calculator can show potential savings from ELSS alongside other options like NPS or home loans.
3. What is the lock-in period for ELSS investments?
ELSS has the shortest lock-in of 3 years among tax-saving options. This makes it flexible compared to PPF (15 years). Check a tax saving calculator to compare ELSS with 80C options and see regime impacts.
4. How are returns from ELSS taxed?
ELSS returns are subject to long-term capital gains tax at 10% above ₹1 lakh (if held over 3 years). Use a tax saving calculator to factor in deductions under 80C and estimate net savings for FY 2024-25.
5. What are the best tax-saving investments under 80C?
Top options include ELSS for growth, PPF for safety, EPF for retirement, and LIC premiums. A tax saving calculator helps compare these, including 80D for health insurance, to optimize total deductions.
6. Can NRIs invest in ELSS for tax benefits?
Yes, NRIs can invest in ELSS and claim up to ₹1.5 lakh under 80C, but they must follow FEMA rules. A tax saving calculator tailored for Indian taxes can simulate savings for NRIs using ELSS or NPS.
7. What is the difference between old and new tax regimes for savings?
Old regime allows deductions like 80C, 80D, and home loan interest; new offers lower rates but fewer exemptions. Switch using a tax saving calculator to see which saves more with ELSS or donations.
8. How does NPS help in additional tax saving?
Under 80CCD(1B), NPS offers extra ₹50,000 deduction beyond 80C. Combine with ELSS for more benefits. A tax saving calculator breaks down total savings from NPS, 80D, and other sections.
9. What deductions are available for health insurance?
Section 80D allows up to ₹25,000 (₹50,000 for seniors) on premiums, plus ₹5,000 for check-ups. Integrate this in a tax saving calculator with 80C options like ELSS to maximize overall reductions.
10. How to claim home loan interest deduction?
Under Section 24(b), deduct up to ₹2 lakh on home loan interest. Pair with 80C investments like ELSS. Use a tax saving calculator to input loan details and view combined savings across regimes.