Tax Saving Planner - HRA, 80C, 80D, NPS Deductions
See exactly how much tax you can save using HRA exemption, Section 80C, 80D, NPS, and home loan deductions. Compare your tax before and after optimisation under the Old Regime.
Total Tax Saved (Old Regime)
₹89,960
Tax Without Deductions
₹1.56 L
Tax With Deductions
₹66,040
Deductions Breakdown
How the Tax Saving Planner Works
This planner calculates tax savings under the Old Tax Regime by applying all eligible deductions:
- HRA Exemption: Minimum of (actual HRA, rent - 10% basic, 50%/40% of basic)
- Section 80C (₹1.5L max): ELSS, PPF, EPF, LIC, NSC, home loan principal, tuition fees
- Section 80CCD(1B) (₹50K max): Additional NPS contribution beyond 80C limit
- Section 80D: Health insurance - ₹25K self + ₹25K-₹50K parents
- Section 24 (₹2L max): Home loan interest deduction
- Standard Deduction: ₹75,000 (applicable to all salaried employees)
Tax Calculation (Old Regime FY 2024-25)
Income Slabs:
Up to ₹2.5L: Nil
₹2.5L - ₹5L: 5%
₹5L - ₹10L: 20%
Above ₹10L: 30%
+ Health & Education Cess: 4%
Tax Saved = Tax (without deductions) - Tax (with deductions)
Frequently Asked Questions - Tax Saving
What is Section 80C?
Section 80C allows tax deductions up to ₹1.5 lakh per year. Eligible investments include ELSS mutual funds (3-year lock-in), PPF, EPF, NSC, 5-year tax-saving FD, life insurance premiums, home loan principal repayment, and children's tuition fees. ELSS is popular because of its shortest lock-in and potential for highest returns.
What is Section 80D?
Section 80D provides tax benefits on health insurance premiums. You can claim up to ₹25,000 for self and family, plus ₹25,000 for parents (₹50,000 if parents are senior citizens above 60). This means maximum 80D deduction can be ₹75,000 if your parents are senior citizens.
How is HRA exemption calculated?
HRA exemption is the minimum of three amounts: (1) Actual HRA received from employer, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary (metro cities) or 40% of basic (non-metro). The lowest of these three becomes your tax-exempt HRA amount.
Can I claim both HRA and home loan benefits?
Yes. If you own a home in one city but rent in another for employment, you can claim both HRA exemption (on rent paid) and home loan deductions (Section 24 for interest, Section 80C for principal). This is common for people posted to different cities than where they own property.
What is the maximum total tax saving possible?
In the 30% bracket: 80C saves ₹46,800, NPS 80CCD saves ₹15,600, 80D saves ₹15,600-₹23,400, Section 24 saves up to ₹62,400, HRA can save significantly more. Total potential saving: ₹1.5L-₹2.5L+ depending on your salary and deductions utilized.
Old Regime vs New Regime — which is better?
If your total deductions (HRA + 80C + 80D + NPS + Section 24) exceed ₹3-4 lakhs, Old Regime is usually better. New Regime is better for those with fewer deductions. This calculator helps you calculate Old Regime tax — compare with New Regime to decide.
Tax-saving investment planner — Section 80C
Section 80C allows ₹1.5 lakh deduction from taxable income (old regime). Common instruments: ELSS mutual funds (3-year lock, equity returns), PPF (15-year, tax-free), EPF (salaried), life insurance premium, home loan principal, SSY, NSC, and 5-year tax-saving FD. ELSS typically offers best growth potential for young investors willing to accept market risk.
In the 30% tax bracket, fully utilizing 80C saves ₹46,800 tax annually. Add NPS ₹50,000 under 80CCD(1B) for another ₹15,600 savings. Plan investments before March to avoid last-minute rushed decisions.
ELSS selection tips
Choose funds with consistent 5-year rolling returns, reasonable AUM, and low expense ratio (Direct plan). Browse category leaders on best funds. Avoid insurance-linked products masquerading as 80C investments — high charges erode returns.
Old vs new regime decision
If your total deductions (80C + 80D + HRA + home loan interest) exceed ~₹3–4 lakh, old regime often wins for high earners. Use tax calculator with your actual salary structure before committing to ELSS or PPF solely for tax savings.