Calculator
Optimize Your Tax Savings
Calculate your tax liability and discover how ELSS, PPF, NPS, and insurance can help you save taxes while building wealth.
Maximize Deductions
Optimize your Section 80C, 80D, and 80CCD deductions to reduce tax liability.
Build Wealth
Invest in tax-saving instruments like ELSS that help you save taxes and grow wealth.
Compare Regimes
See which tax regime (old vs new) works better for your financial situation.
Inputs
Optimize your tax savings
Enter your income and current tax-saving investments to see how much you can save.
Annual Income
Your total annual income (before tax deductions).
Current Tax Saving Investments (80C)
Total amount already invested in 80C eligible instruments (excluding ELSS, PPF, Life Insurance below).
ELSS Investment
Amount you plan to invest in ELSS mutual funds (eligible for 80C deduction).
PPF Contribution
Amount you plan to contribute to PPF (Public Provident Fund) - eligible for 80C.
Life Insurance Premium
Annual premium paid for life insurance (eligible for 80C deduction).
Home Loan Principal Repayment (80C)
Principal repayment on home loan (eligible for 80C deduction).
NPS Contribution (80CCD)
Amount you plan to contribute to NPS (additional deduction up to ₹50,000 under 80CCD(1B)).
Health Insurance Premium (80D)
Annual premium paid for health insurance (deduction under Section 80D).
Results
Tax Savings Analysis
Your personalized tax optimization insights.
Total Deductions
₹0
Section 80C Used
₹0
Max limit: ₹1,50,000
NPS Additional (80CCD)
₹0
Up to ₹50,000
Health Insurance (80D)
₹0
Up to ₹25,000
Taxable Income
₹10,00,000
Tax (Old Regime)
₹1,06,600
Tax (New Regime)
₹44,200
Recommended Regime
New
New regime saves more
Maximize Your 80C Deduction
You still have ₹1,50,000 remaining in your 80C limit. Consider investing in ELSS mutual funds, PPF, or other 80C eligible instruments to maximize your tax savings.
Next step
Need help optimizing your tax-saving investments? Our experts can help you choose the right mix of ELSS, PPF, NPS, and insurance to maximize your savings while building wealth.
Get Your Personalized Tax Planning Report – Free
Download a detailed tax optimization report with actionable recommendations.
What is a Tax Savings Calculator?
A Tax Savings Calculator is a financial planning tool that helps you estimate your tax liability and identify opportunities to save taxes through various investment options and deductions available under the Income Tax Act. It calculates how much tax you can save by investing in tax-saving instruments like ELSS (Equity Linked Savings Scheme), PPF (Public Provident Fund), NPS (National Pension System), life insurance, and health insurance.
By inputting your annual income and current tax-saving investments, the calculator shows you how different investment options can reduce your taxable income and ultimately lower your tax burden. It also helps you understand which tax regime (old or new) is more beneficial for your financial situation.
Key Tax-Saving Sections
Section 80C
Deduction up to ₹1,50,000 for investments in ELSS, PPF, life insurance premium, home loan principal repayment, and other eligible instruments.
Section 80CCD(1B) - NPS
Additional deduction up to ₹50,000 for contributions to National Pension System (NPS), over and above the 80C limit.
Section 80D - Health Insurance
Deduction up to ₹25,000 for health insurance premium (₹50,000 if parents are covered, higher limits for senior citizens).
ELSS Mutual Funds
Equity Linked Savings Schemes offer tax deduction under 80C with potential for higher returns compared to traditional tax-saving options.
Frequently Asked Questions
Section 80C allows a maximum deduction of ₹1,50,000 per financial year. This includes investments in ELSS, PPF, life insurance premium, home loan principal repayment, NSC, tax-saving FDs, and other eligible instruments.
The choice depends on your income level and the amount of deductions you can claim. If you have significant deductions (80C, 80D, home loan interest, etc.), the old regime might be beneficial. For those with fewer deductions, the new regime with lower tax rates might be better. Our calculator helps you compare both regimes.
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that qualifies for tax deduction under Section 80C. It has a lock-in period of 3 years and offers potential for higher returns compared to traditional tax-saving options like PPF or tax-saving FDs. ELSS combines tax savings with wealth creation through equity exposure.
Yes, you can claim both. Section 80C allows deduction up to ₹1,50,000, and Section 80CCD(1B) provides an additional deduction of up to ₹50,000 specifically for NPS contributions. So you can potentially save tax on up to ₹2,00,000 through these sections.
It's best to start investing early in the financial year (April onwards) rather than waiting until March. This allows your investments more time to grow, especially for equity-based instruments like ELSS. However, if you haven't invested yet, March is still a good time to make last-minute tax-saving investments.
Tax deduction reduces your taxable income, while tax exemption means certain income is not taxed at all. For example, ELSS gives you a tax deduction (reduces taxable income), while long-term capital gains on equity funds up to ₹1 lakh are tax-exempt (not included in taxable income).
Summary
A Tax Savings Calculator is an essential tool for anyone looking to optimize their tax liability while building wealth. By understanding how different tax-saving instruments work and comparing the old and new tax regimes, you can make informed decisions that maximize your tax savings while achieving your financial goals.
Remember, tax planning should be done throughout the year, not just at the end of the financial year. Investing in tax-saving instruments like ELSS early allows your money more time to grow, combining tax benefits with wealth creation. Consult with a financial expert to create a personalized tax-saving strategy that aligns with your financial goals and risk profile.
