A tax saving calculator helps you identify and maximize all eligible tax deductions under the old tax regime to legally reduce your income tax liability.
About this calculator
A tax saving calculator helps you identify and maximize all eligible tax deductions under the old tax regime to legally reduce your income tax liability. The old regime allows several deductions — from ₹1.5 lakh under Section 80C (PPF, ELSS, EPF, LIC premium, principal repayment) to ₹25,000–₹50,000 under Section 80D (medical insurance), an additional ₹50,000 under Section 80CCD(1B) for NPS, and HRA exemption or home loan interest deduction under Section 24(b).
Many taxpayers leave significant tax savings on the table by not fully utilizing available deductions. This calculator shows you exactly how much tax you can save by optimally filling each deduction bucket, and compares your post-optimization old regime tax against the new regime tax so you can make an informed choice.
Common uses
- Find how much more to invest in 80C instruments to reach the ₹1.5 lakh limit
- Calculate how buying health insurance under 80D reduces your tax bill
- See how NPS investment of ₹50,000 reduces tax via the 80CCD(1B) deduction
- Compare old regime (with deductions) vs new regime (no deductions) to pick the right one
- Plan tax-saving investments at the start of the year rather than rushing in March
Frequently asked questions
What investments qualify for Section 80C deduction?
The most popular 80C instruments are: Employee PF contributions, PPF, ELSS mutual funds (3-year lock-in), LIC premium, NSC, 5-year bank FD (tax-saving), Sukanya Samriddhi Yojana, and home loan principal repayment. The combined limit across all instruments is ₹1.5 lakh per year. ELSS offers the shortest lock-in with potential for the highest returns.
What is covered under Section 80D medical insurance deduction?
Section 80D allows deduction for health insurance premiums: ₹25,000 for self, spouse, and dependent children; additional ₹25,000 for parents (₹50,000 if parents are senior citizens). If you are also a senior citizen, the limit increases further. The premium must be paid by any mode other than cash. This deduction is in addition to the ₹1.5 lakh 80C limit.
Can I claim both 80C and 80CCD(1B) in the same year?
Yes. 80C and 80CCD(1B) are separate deduction limits. You can claim ₹1.5 lakh under 80C (which includes 80CCD(1) NPS contribution up to 10% of salary) and an additional ₹50,000 specifically for NPS Tier 1 under 80CCD(1B). Together, this gives a maximum deduction of ₹2 lakh from NPS alone — the highest tax benefit available from a single instrument.
When does the old tax regime save more than the new regime?
The old regime saves more when your total eligible deductions exceed approximately ₹3.75 lakh (the mathematical crossover point for FY2024-25). Common scenario: ₹1.5L (80C) + ₹50,000 (80CCD1B) + ₹25,000 (80D) + ₹2L (home loan interest) = ₹4.25L in deductions. In this case, the old regime clearly wins. If your deductions are below ₹2–3 lakh, the new regime is usually better.
Can I switch between old and new tax regime every year?
If you have salary income only (no business income), you can switch between the old and new regimes every financial year when filing your ITR. If you have business income, you can switch only once from the new regime to the old regime in your lifetime. Choose your regime at the start of the year to inform your employer for correct TDS calculation.