What is the Section 80C Tax Saving Calculator?
Applicable to India only. This tool is based on Section 80C of the Income Tax Act, 1961, under the old tax regime. It estimates how much income tax you can save in a financial year by claiming deductions on eligible investments and expenses. Note: Section 80C deductions are not available under the new (default) tax regime. Figures use the standard ₹1,50,000 deduction ceiling.
How to use it
Enter your total Section 80C eligible investments — this can include EPF contributions, PPF, ELSS mutual funds, life insurance premiums, NSC, tax-saving fixed deposits, Sukanya Samriddhi, NPS (Tier I under 80C), tuition fees, and the principal portion of your home loan EMI. Pick your marginal income tax slab rate, and optionally include the 4% Health & Education Cess. The calculator caps your claim at ₹1,50,000, multiplies the eligible amount by your slab rate, and shows the tax you save plus any unused headroom.
The formula explained
The deduction allowed is the lower of your actual eligible investments or ₹1,50,000. Your tax saving equals that capped amount multiplied by your marginal slab rate (the rate at which your highest income is taxed). If cess applies, the saving is increased by 4%.
$$\text{Tax Saved} = \min\!\left(\text{Investments},\ 150000\right) \times \frac{\text{Slab Rate}}{100}$$
Worked example
Suppose you invest ₹2,00,000 across PPF and ELSS and fall in the 30% slab. The deduction is capped at ₹1,50,000. Tax saved $$= ₹1{,}50{,}000 \times 30\% = ₹45{,}000.$$ Adding 4% cess gives $$₹45{,}000 \times 1.04 = ₹46{,}800.$$ Your ₹50,000 above the cap (\(₹2{,}00{,}000 - ₹1{,}50{,}000\)) gives no extra 80C benefit.
FAQ
Is the ₹1.5 lakh limit per person? Yes, it is a combined ceiling across all Section 80C investments per individual taxpayer, per financial year.
Does this work under the new tax regime? No. Most 80C deductions are unavailable under the new regime. Use this tool if you opt for the old regime.
What slab rate should I choose? Use your marginal (highest) slab rate, since the deduction reduces your top slice of taxable income.
