Section 80C & 80D Deduction Calculator — Tax Saved

Quick answer

Under the old tax regime, Section 80C lets you deduct up to ₹1.5 lakh a year for investments and payments like EPF, PPF, ELSS, life insurance and tuition fees. Section 80D adds up to ₹25,000 for health insurance of self and family (₹50,000 if senior) and another ₹25,000 for parents (₹50,000 if senior). NPS under 80CCD(1B) gives an extra ₹50,000. The new regime does not allow these deductions.

What this 80C and 80D calculator shows you

This calculator answers a simple question: if I claim my tax-saving investments and health insurance, how much tax do I actually save? It applies the legal limits to what you enter, reduces your taxable income, recalculates your old-regime tax and shows the difference in rupees.

It also shows an approximate new-regime tax figure, because these deductions only matter if you file under the old regime. If the new regime is cheaper for you even after all your deductions, there is no point stretching to invest just for tax.

The calculator covers the three deductions most salaried people use: 80C (including 80CCC and your own NPS within the same limit), 80D for health insurance, and 80CCD(1B) for the additional NPS deduction. Other deductions such as 80E (education loan interest) or 80G (donations) are not part of this tool.

If you have any of those other deductions, such as interest on an education loan, eligible donations or the ₹10,000 savings-account interest deduction under 80TTA, subtract them from your income first. Then enter the reduced figure as your income before these deductions, so the calculator works from the right starting point and the saving it shows is accurate.

How to use the calculator, step by step

1. Financial year — choose the year you are planning or filing for. The site uses the same slab rates and limits for FY 2025-26 and FY 2026-27.
2. Taxable income before these deductions — enter your income after all other exemptions and deductions, but before 80C, 80D and 80CCD(1B). For a salaried person this is gross salary minus the ₹50,000 standard deduction, exempt HRA, professional tax and any home loan interest, plus other income like interest and rent.
3. Your age — choose below 60, 60 to 79 (senior) or 80 and above (super senior). This decides your old-regime slabs and whether the ₹25,000 or ₹50,000 limit applies to your own health insurance.
4. 80C investments and payments — enter the total of everything that qualifies under 80C for the year, even if it is more than ₹1.5 lakh. The calculator caps it automatically.
5. Health insurance — self and family — enter the premium you paid for yourself, your spouse and dependent children, plus any preventive health check-up cost (within ₹5,000).
6. Health insurance — parents — enter the premium paid for your parents' policy.
7. Are your parents senior citizens? — choose yes if either parent covered is 60 or older. This raises the parents' limit from ₹25,000 to ₹50,000.
8. Your NPS — 80CCD(1B) — enter your own contribution to NPS Tier I that you want to claim over and above 80C. The calculator caps this at ₹50,000.

The result shows the tax you save, the total deductions allowed, how much was allowed under each head, your old-regime tax after deductions and an approximate new-regime tax for comparison.

How the calculation works

The tool follows four steps that mirror what happens in your return.

1. It caps each deduction: 80C at ₹1,50,000; self and family health insurance at ₹25,000 (₹50,000 if your age is 60 or above); parents' health insurance at ₹25,000 (₹50,000 if they are senior); 80CCD(1B) at ₹50,000.
2. It adds the allowed amounts to get your total deductions.
3. It calculates old-regime tax on your income before deductions and again on your income after deductions, using the slabs for your age, the ₹12,500 rebate under Section 87A (when taxable income is ₹5 lakh or less) and 4% cess.
4. The difference between the two tax figures is your tax saving.

Notice that the saving is not simply "deduction × your slab rate". If your deductions take you across a slab boundary, or bring your taxable income down to ₹5 lakh where the rebate kicks in, the saving can be larger or smaller than a flat-rate guess. That is why the calculator recalculates the full tax both ways.

Surcharge is applied by the engine when income is above ₹50 lakh, so very high earners also get a realistic figure.

Limits at a glance

The highest possible 80D deduction is ₹1,00,000, when you are a senior citizen and so are your parents. Together with 80C and 80CCD(1B), a person below 60 with senior parents can claim up to ₹2,75,000 through these sections.

Note: the Income-tax Act, 2025 applies from tax year 2026-27 and renumbers these sections. This page and the calculator use the familiar numbers (80C, 80D, 80CCD(1B), 87A) and the limits shown above.

What counts under Section 80C

Investments

• Employee Provident Fund (EPF) — your own share deducted from salary, including voluntary PF. The employer's share does not count here.
• Public Provident Fund (PPF) — deposits in your own, your spouse's or your children's account.
• ELSS mutual funds — equity-linked savings schemes with a 3-year lock-in, the shortest among 80C options.
• National Savings Certificate (NSC) — the 5-year post office certificate.
• Tax-saver fixed deposit — 5-year deposits with banks or the post office meant for 80C.
• Senior Citizens' Savings Scheme and Sukanya Samriddhi Yojana (for a girl child).
• Pension plans under 80CCC and your own NPS contribution under 80CCD(1), which share the same ₹1.5 lakh limit.

Payments

• Life insurance premium for yourself, your spouse or your children. For policies issued on or after 1 April 2012, premium counts only up to 10% of the sum assured in most cases.
• Tuition fees for full-time education of up to two children in India. Only the tuition component counts; development fees, transport and donations do not.
• Home loan principal repaid for a residential house, plus stamp duty and registration charges in the year you pay them.

Comparing common 80C options

The deduction is the same ₹1 for ₹1 whichever option you pick, so the choice should depend on your lock-in comfort, risk appetite and goal, not on the tax alone.

Whose payments count

80C is claimed by the person who pays. Life insurance counts for your own, your spouse's and your children's policies, but not your parents'. Tuition fees count only for your children, not for yourself or your spouse. A husband and wife each have their own ₹1.5 lakh limit, so a couple can claim up to ₹3 lakh together if both pay from their own income.

Post office schemes such as PPF, NSC, SCSS and Sukanya Samriddhi are explained on the India Post website. If you invest in PPF, our PPF calculator shows the maturity value.

What counts under Section 80D

Section 80D covers premium paid for health insurance (mediclaim) for yourself, your spouse and dependent children in one bucket, and for your parents in a second bucket. Each bucket has its own limit, so you can claim both.

• The premium must be paid by any mode other than cash, such as bank transfer, card or UPI.
• Preventive health check-ups up to ₹5,000 a year can be paid in cash, but they sit inside the ₹25,000 or ₹50,000 limit, not on top of it.
• For a senior citizen who has no health insurance, medical expenditure paid for them can be claimed within the ₹50,000 limit.
• If you pay a multi-year policy premium in one go, the deduction is spread equally over the years of cover.
• Premium for parents-in-law, siblings or other relatives does not qualify.

The calculator picks your own 80D limit based on your age. If you are below 60 but your spouse is a senior citizen covered in the same policy, the higher limit may apply to you; in that case enter the full premium and have the final limit checked.

Worked examples with real numbers

Example 1: maxing out every deduction

Ankit is 35. His taxable income before these deductions is ₹12,00,000. He has ₹1,50,000 in 80C (EPF and ELSS), pays ₹25,000 for his family's health insurance, ₹50,000 for his senior-citizen parents and puts ₹50,000 into NPS.

• Total deductions = 1,50,000 + 25,000 + 50,000 + 50,000 = ₹2,75,000
• Old-regime tax on ₹12,00,000 = ₹12,500 + ₹1,00,000 + ₹60,000 = ₹1,72,500, plus 4% cess = ₹1,79,400
• Taxable income after deductions = ₹9,25,000
• Old-regime tax on ₹9,25,000 = ₹12,500 + ₹85,000 = ₹97,500, plus cess = ₹1,01,400
• Tax saved = ₹78,000

That is a big saving, but it is still worth comparing. If Ankit's ₹12 lakh came only from salary (₹12.5 lakh gross less the ₹50,000 standard deduction), his new-regime taxable income would be ₹11,75,000 after the ₹75,000 standard deduction. That is within the ₹12 lakh limit for the 87A rebate, so his new-regime tax would be nil. For him the new regime wins, despite ₹2.75 lakh of deductions.

Example 2: a moderate saver

Pooja is 29 with taxable income of ₹7,00,000. She has ₹1,00,000 in 80C and pays ₹15,000 for her health insurance. No parents' policy, no NPS.

• Total deductions = ₹1,15,000
• Tax before = ₹12,500 + ₹40,000 = ₹52,500, plus cess = ₹54,600
• Tax after (on ₹5,85,000) = ₹12,500 + ₹17,000 = ₹29,500, plus cess = ₹30,680
• Tax saved = ₹23,920

If her income is all salary, her new-regime taxable income would be ₹6,75,000, which is well within the rebate limit, so new-regime tax would be nil. The calculator's note will point her towards the new regime.

Example 3: crossing the ₹5 lakh rebate line

Ravi's taxable income before deductions is ₹6,50,000. He claims ₹1,50,000 under 80C and ₹25,000 under 80D.

• Total deductions = ₹1,75,000, leaving ₹4,75,000
• Tax before = ₹42,500 + cess = ₹44,200
• Tax on ₹4,75,000 = ₹11,250, fully covered by the 87A rebate of up to ₹12,500
• Tax saved = ₹44,200 — his whole old-regime tax

Here ₹1,75,000 of deductions saved ₹44,200, far more than a 5% or 20% rate would suggest, because they brought him under the ₹5 lakh rebate limit. This is exactly the kind of effect the calculator captures by recalculating the full tax.

Example 4: when the old regime still wins

Neha earns a gross salary of ₹24 lakh, lives in a rented flat in Delhi and also has a home loan on a house in another city. Her exempt HRA is ₹3,50,000 and home loan interest is ₹2,00,000. After the ₹50,000 standard deduction, her taxable income before 80C and 80D is ₹18,00,000. She claims the same ₹2,75,000 as Ankit.

• Old-regime tax before = ₹3,52,500 + cess = ₹3,66,600
• Old-regime tax after (on ₹15,25,000) = ₹2,70,000 + cess = ₹2,80,800
• Tax saved = ₹85,800
• New-regime tax on ₹23,25,000 (₹24 lakh less ₹75,000) = ₹2,81,250 + cess = ₹2,92,500

The old regime is cheaper by ₹11,700. Note that the calculator's approximate new-regime figure starts from the income you entered, so it cannot see that HRA and home loan interest are also lost in the new regime. When you have big exemptions like these, compare both regimes properly in the income tax calculator.

Example 5: a senior citizen

Mr Sharma is 65, with pension and interest income giving a taxable income before deductions of ₹9,00,000. He invests ₹1,50,000 in the Senior Citizens' Savings Scheme and pays ₹40,000 for health insurance for himself and his wife.

• His 80D limit is ₹50,000 as a senior, so the full ₹40,000 is allowed
• Total deductions = ₹1,90,000, leaving ₹7,10,000
• Tax before (senior slabs, ₹3 lakh nil) = ₹10,000 + ₹80,000 = ₹90,000, plus cess = ₹93,600
• Tax after = ₹10,000 + ₹42,000 = ₹52,000, plus cess = ₹54,080
• Tax saved = ₹39,520

If he also has bank interest, he should look at the ₹50,000 deduction for senior citizens under Section 80TTB in the old regime, which this calculator does not include. Remember to choose the right age band, because the slabs and the 80D limit both depend on it.

Old regime or new regime: when do these deductions matter?

Since the new regime became the default, the key question for most people is not "how do I fill my ₹1.5 lakh?" but "is the old regime worth it at all?". With a ₹75,000 standard deduction and the 87A rebate covering taxable income up to ₹12 lakh, the new regime is usually cheaper for salaried people whose only deductions are 80C and 80D.

The old regime tends to win when you have several large items together: high rent with HRA exemption, home loan interest on a self-occupied house, full 80C, full 80D including parents and NPS under 80CCD(1B). Our HRA calculator helps you work out the HRA part.

Salaried people without business income can choose their regime every year when filing the return. People with business or professional income face restrictions on switching back and forth, so they should decide carefully.

A quick break-even check

Think of it this way. The old regime gives you all your deductions but higher slab rates and a smaller standard deduction. The new regime gives you lower rates, a ₹75,000 standard deduction and a much bigger rebate, but almost no deductions. The more deductions and exemptions you have in total, the more likely the old regime wins.

For someone with only 80C and 80D, these deductions on their own are usually not enough to beat the new regime at common salary levels. Once HRA and home loan interest are added, the picture can change. The only reliable answer comes from calculating both on your own numbers, which is what the income tax calculator does.

A practical rule: run this calculator first. If the note says the new regime is still cheaper, do not invest purely to save tax. Invest because the product suits your goals.

Common mistakes to avoid

• Forgetting EPF. Your PF deduction from salary often uses up a large part of the ₹1.5 lakh limit on its own. Check your salary slip before buying more 80C products.
• Counting the employer's PF share. Only your own contribution counts under 80C.
• Adding NPS twice. The same rupee of your NPS contribution cannot be claimed under both 80CCD(1) and 80CCD(1B). Use 80CCD(1B) for the first ₹50,000 and the rest, if any, within 80C.
• Paying health insurance premium in cash. Cash premium is not allowed under 80D. Only preventive check-ups can be paid in cash.
• Claiming the whole multi-year premium in one year. It must be spread over the years of cover.
• Including non-tuition school fees. Development fees, transport and annual charges do not qualify.
• Investing after 31 March. Deductions count for the financial year in which you pay. A payment in April counts for the next year.
• Claiming life insurance for parents under 80C. Parents' life policies do not qualify, though their health insurance does under 80D.
• Ignoring the 10% of sum assured rule. For newer life policies, premium above 10% of the sum assured is not deductible in most cases.
• Claiming the employer's group health cover. If your employer pays the premium and nothing is deducted from your salary, you cannot claim it under 80D.
• Claiming in the new regime. 80C, 80D and 80CCD(1B) are not allowed there. If you file under the new regime, these claims are ignored.

Proofs, Form 12BB and timing

If you are salaried, your employer deducts TDS based on what you declare. Early in the year you give an investment declaration. Towards the end of the year, usually by January or February, your employer asks for proofs. These are submitted through Form 12BB.

Keep these documents ready:

• PPF passbook or statement, ELSS account statement, NSC or tax-saver FD receipts.
• Life insurance premium receipts showing policy number and sum assured.
• School fee receipts showing the tuition fee part separately.
• Home loan certificate showing principal and interest for the year.
• Health insurance premium receipts showing the mode of payment and who is covered.
• NPS transaction statement showing Tier I contributions.

Our Form 12BB generator helps you prepare the declaration in the right format. If you missed giving proofs to your employer, you can still claim eligible deductions directly in your ITR under the old regime, as long as you have the evidence.

How this connects to your ITR

In the return, these amounts go into the deductions schedule (Chapter VI-A). Each section is entered separately: 80C, 80CCD(1B), and 80D with the split between self and parents and whether anyone is a senior citizen. The total reduces your gross total income to arrive at taxable income.

If you filed under the new regime, this schedule is mostly blocked. Before you file, compare both regimes and make sure your choice matches the deductions you plan to claim. The pre-filled return on the income tax e-filing portal picks up deductions from Form 16, but always check that the amounts match your proofs.

When your filing regime differs from your employer's TDS

Your employer deducts TDS using the regime you told them at the start of the year. You can still pick the other regime when filing your ITR, if you have no business income. If you declared the old regime to your employer but the new regime turns out cheaper, you may get a refund after filing. If you declared the new regime but file under the old regime with deductions, the result depends on whether the deductions cover the higher old-regime rates.

In either case, the final tax is decided in your return, not in Form 16. Use the figures from this calculator and the income tax calculator to know in advance whether you will have a balance to pay, so you can pay it as self-assessment tax before filing and avoid interest.

If your Form 16 shows lower deductions than you are entitled to, you may claim the correct amount in the ITR. Keep the proofs, because the department can ask for them during processing or in a notice.

Planning tips for the year

Start with what is already committed: EPF, life insurance premium, tuition fees and home loan principal. Subtract that from ₹1.5 lakh to see how much room is left. Only then decide whether to add PPF, ELSS or something else.

Spread your investments through the year instead of rushing in March. Monthly SIPs in ELSS or regular PPF deposits avoid last-minute decisions and help you choose products that fit your goals, not just your tax.

Buy health insurance for its cover first and tax benefit second. A parents' policy is often the most valuable deduction in this calculator, especially when they are senior citizens, because it opens a separate ₹50,000 limit.

Get it checked by an expert

Choosing between regimes and claiming the right amount under each section is where most errors happen. A TaxCaller expert can review your salary, investments and insurance, compare both regimes on your actual numbers and file your ITR with the correct deductions. You are told the fee upfront before any work begins, and the first call is free. Visit our income tax filing service to book it.