Tax Saving Calculator
Find every deduction you're missing under the Old Regime — 80C, 80D, NPS, HRA, and home loan interest — and see exactly how much more you could save.
About the Tax Saving Calculator — Tax & Salary Guide
This free Tax Saving Calculator is designed specifically for Indian users, using documented calculation methods, with source references shown where applicable. Rules and formulas are reviewed for the applicable current period; tax-year-specific rules are identified on the page. No sign-up, no download, and no charge — results are instant and displayed in Indian number format (lakhs and crores).
How to Use This Calculator
Enter your values in the input fields above and click the Calculate button. Results update immediately. You can modify any input and recalculate as many times as needed. All inputs are processed locally in your browser. Optional Save Setup stores the setup only in your browser; Share Setup creates a URL containing encoded setup values. See the Privacy Policy for details.
Formula and Calculation Method
The Tax Saving Calculator uses the documented calculation method described on this page. Where rules, rates or thresholds can change, review the cited source and effective date shown here before relying on the result for an important decision.
Understanding Your Results
Results are estimates based on the inputs you provide. Actual outcomes can vary with the rules, rates, prices, biological conditions, or other assumptions that apply to your situation. Review the assumptions and effective date shown on this page before using a result for an important decision.
Why Use CalcuTools India
CalcuTools India is an independent, free calculator platform covering personal finance, income tax, salary, loans, investments, retirement planning, and health, with formulas and applicable rules checked against the stated methodology or primary/reference sources where applicable. We are not affiliated with any bank, insurance company, NBFC, or financial products distributor. Our calculators are free to use. Some pages may contain clearly labelled partner or affiliate offers; these do not affect the calculation result.
CalcuTools India · India-focused calculators · Updated September 2026 · About Us · How We Verify · Editorial Policy · Disclaimer
Tax Saving in India for FY 2026-27
Tax planning is one of the most powerful tools for building wealth — every rupee saved in tax is a rupee that continues to compound and grow. The Indian Income Tax Act provides numerous legal deductions and exemptions that can reduce your taxable income by ₹2–5 lakh or more annually, depending on your situation.
Section 80C — The Most Widely Used Deduction (up to ₹1.5 lakh)
Section 80C allows a deduction of up to ₹1,50,000 per financial year under the Old Tax Regime. This is the single largest tax-saving provision for most salaried Indians. Eligible investments include Employee Provident Fund (EPF) contributions, Public Provident Fund (PPF) deposits, ELSS mutual funds (Equity Linked Savings Scheme with 3-year lock-in), life insurance premium payments, NSC (National Savings Certificates), 5-year fixed deposits with banks and post offices, Sukanya Samriddhi Yojana, tuition fees for children, and principal repayment of home loan.
ELSS has a 3-year lock-in and is market-linked, so its historical return profile is different from fixed-income options such as PPF and fixed deposits. Compare the tax treatment, risk, liquidity and time horizon rather than relying on past returns. A ₹1.5 lakh ELSS investment saves ₹45,000 in tax for those in the 30% bracket.
Section 80CCD(1B) — Extra ₹50,000 for NPS
Over and above the ₹1.5 lakh 80C limit, Section 80CCD(1B) provides an additional deduction of up to ₹50,000 for contributions to the National Pension System (NPS) Tier I account. This is available under the Old Tax Regime and also under the New Tax Regime (via employer contribution under 80CCD(2)). At 30% bracket, this saves an additional ₹15,600 per year — making NPS one of the tax-saving options available.
HRA Exemption — Huge Saving for Urban Employees
If you pay rent and receive HRA, you can claim an exemption under Section 10(13A). The exempt amount is the minimum of: actual HRA received; rent paid minus 10% of basic salary; or 50% of basic salary (metro cities — Delhi, Mumbai, Kolkata, Chennai) or 40% (non-metro). For someone paying ₹20,000/month rent in Bengaluru with ₹50,000 basic, this could exempt ₹1.32–1.92 lakh annually — a saving of ₹26,000–40,000 in the 20% bracket.
Section 24(b) — Home Loan Interest (up to ₹2 lakh)
If you have a home loan on a self-occupied property, up to ₹2,00,000 of interest paid per year is deductible under Section 24(b) of the Income Tax Act. For a ₹50 lakh loan at 8.5%, the first-year interest is approximately ₹4.18 lakh — far exceeding the ₹2 lakh cap, but the full ₹2 lakh deduction is available, saving ₹60,000 at 30% bracket.
New Regime vs Old Regime — Which Saves More?
The New Tax Regime (default from FY 2024-25) offers lower tax rates but does not allow most deductions including 80C, HRA exemption, and home loan interest. The Old Regime allows all deductions but has higher rates. If your total deductions exceed ₹4–4.5 lakh, the Old Regime usually saves more. Below that, the New Regime often shows lower modeled tax under the stated assumptions. Use the Income Tax Calculator to compare both with your exact figures.
Section 80D — Medical Insurance Premium
Premiums paid for health insurance are deductible under Section 80D — up to ₹25,000 for self, spouse, and children; an additional ₹25,000 for parents (₹50,000 if parents are senior citizens). A family health insurance policy of ₹15,000/year plus ₹20,000 for senior citizen parents gives ₹35,000 deduction, saving ₹7,000 in the 20% bracket. This deduction is available under the Old Regime only.
Source: Income Tax Department · Income Tax Act 1961 · Last Updated September 2026 · Consult a CA for personalised advice