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Ways to save tax

Plain-English, no jargon. Most of these only apply if you pick the old regime — check both before you decide.

Section 80C

Old regime
up to ₹1.5L / year

EPF, PPF, ELSS funds and life-insurance premiums all count. The classic ₹1.5 lakh deduction most people use.

Health insurance · 80D

Old regime
₹25K – ₹1L

Premiums for you, your family and your parents. A higher limit applies if your parents are senior citizens.

NPS · 80CCD(1B)

Old regime
extra ₹50K

National Pension System gives an additional ₹50,000 deduction over and above your 80C limit.

HRA exemption

Old regime
depends on rent

Part of your House Rent Allowance is tax-free if you actually pay rent. Metro cities get a higher limit.

Term insurance

Old regime
within 80C

Pure life-cover premiums count towards 80C. Cheap, and genuinely worth having if anyone depends on you.

Employer NPS · 80CCD(2)

Both regimes
up to 14% of Basic

If your employer contributes to NPS on your behalf, it stays deductible even in the new regime.

Educational only — not tax advice. Limits and eligibility change and depend on your situation. Confirm with a qualified advisor. Rules: Budget 2026 retained FY 2025-26 slabs unchanged. Verified against Income Tax Dept (incometax.gov.in) & ClearTax, July 2026.

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