Tax Deduction Calculator
Tax Deduction Calculator
Calculate your tax savings under various deduction sections like 80C, 80D, 80G, and more to optimize your tax planning
Tax Savings Results
Here's your tax deduction benefits breakdown
Total Deduction Amount
Estimated Tax Savings
Deduction Breakdown
Taxable Income (Without Deductions)
Taxable Income (With Deductions)
How This Tax Deduction Calculator Works
1. Enter Your Information
Start by selecting your preferred tax regime (old or new) and enter your total annual income. Then fill in your eligible deductions in various sections like 80C, 80D, etc.
2. Calculate Tax Savings
Our calculator instantly processes your inputs to determine your taxable income both with and without deductions, and calculates the potential tax savings based on the applicable tax slabs.
3. View and Export Results
Analyze your results with visual charts showing deduction breakdown and tax comparisons. Save your calculations for future reference or download a detailed PDF report for your records.
Understanding Tax Deductions in India
Tax deductions directly reduce your taxable income, which in turn lowers your tax liability. The Indian tax system offers various deduction options under different sections of the Income Tax Act. Here's how they can benefit you:
Section 80C Investments
Investments like PPF, ELSS mutual funds, life insurance premiums, and more qualify for deductions up to ₹1.5 lakhs annually. This section is designed to encourage long-term savings and investments.
Health Insurance (80D)
Premiums paid for health insurance for yourself, spouse, children, and parents can lead to significant deductions, especially if any of the insured members are senior citizens.
Home Loan Benefits
Principal repayment (under 80C) and interest payment (under Section 24) on home loans offer substantial tax benefits, making homeownership more affordable from a tax perspective.
Education and Retirement
Education loan interest (80E) and contributions to retirement funds like NPS (80CCD) offer additional deductions beyond the 80C limit, supporting both education and retirement planning.
Frequently Asked Questions
What is the Section 80C deduction limit?
What is the difference between the old and new tax regimes?
How much can I claim for health insurance premiums under Section 80D?
What is the maximum deduction available for home loan interest?
How does the National Pension System (NPS) deduction work?
Is tax saved through deductions completely exempt from taxation?
About Tax Deductions in India
Tax deductions are expenses or investments that reduce your taxable income, thereby lowering the amount of tax you need to pay. The Indian Income Tax Act provides numerous deductions under various sections to promote specific financial behaviors like saving, investing, insurance coverage, and homeownership.
In India, tax deductions can be broadly categorized into several types:
- Investment-based deductions (Section 80C): Includes investments in PPF, ELSS, life insurance premiums, and more.
- Health-related deductions (Section 80D): For health insurance premiums and medical expenses.
- Home loan deductions (Section 24, 80EE, 80EEA): For interest and principal repayment of home loans.
- Educational deductions (Section 80E): For interest on education loans.
- Charitable deductions (Section 80G): For donations to approved charitable organizations.
- Retirement-focused deductions (Section 80CCD): For contributions to the National Pension System.
It's important to understand and utilize these deductions effectively to optimize your tax planning. The Tax Deduction Calculator helps you estimate your potential tax savings from various deductions and determine whether the old tax regime or the new tax regime would be more beneficial for your specific financial situation.
Tax Deduction vs. Tax Exemption
While often used interchangeably, tax deductions and exemptions are different:
- Tax deductions reduce your taxable income before the tax is calculated
- Tax exemptions refer to income that is not included in your taxable income at all (like HRA, LTA)
This calculator focuses on deductions, which directly reduce your taxable income based on specific investments or expenses you make.
Exploring Tax-Saving Strategies
Effective tax planning involves more than just claiming deductions:
- Align investments with your financial goals, not just tax benefits
- Consider liquidity needs before locking funds in tax-saving instruments
- Evaluate the post-tax returns of different options
- Plan investments throughout the year rather than rushing at year-end
- Regularly reassess your tax strategy as income levels and tax laws change
Explore More Calculators
Capital Gains Tax Calculator
Calculate your capital gains tax liability on sale of equity, property, and other assets with indexation benefits.
Try CalculatorGST Calculator
Calculate GST amount, net price, and gross price for different GST rates applicable in India.
Try CalculatorIncome Tax Calculator
Calculate your income tax liability as per the latest tax slabs under both old and new tax regimes in India.
Try CalculatorEMI Calculator
Calculate your loan EMI, total interest payable, and amortization schedule for home, car, and personal loans.
Try CalculatorSIP Calculator
Calculate returns on your SIP investments with this powerful Systematic Investment Plan calculator.
Try CalculatorPPF Calculator
Calculate maturity value and returns on your Public Provident Fund (PPF) investments with yearly deposits.
Try CalculatorExplore Calculator Categories
Discover our range of specialized calculators designed to help you make informed financial decisions across different aspects of your financial life.
Tax Calculators
Plan your taxes efficiently with our comprehensive tax calculators designed for Indian taxpayers.
View All Tax CalculatorsInvestment Calculators
Plan your investments and track your wealth growth with our specialized investment calculators.
View All Investment CalculatorsLoan Calculators
Manage your loans effectively and plan repayments with our comprehensive loan calculators.
View All Loan Calculators