Tax Saving Calculator 2025-26
Plan your tax-saving investments for FY 2025-26 with our comprehensive Section 80C calculator. Compare ELSS, PPF, EPF and other investments to maximize your tax savings up to ₹1.5 lakhs.
Section 80C deductions available up to ₹1.5 lakh
Section 80C Investments
Annual Tax Savings
₹33.00 K
Section 80C Deduction: ₹1.10 L
Total Investments
₹1.10 L
Remaining Limit
₹40.00 K
Section 80C Investment Options
ELSS
PPF
EPF
NSC
Life Insurance
Tax Saver FD
Personalized Recommendations
Suggested Investment Strategy
Tax Planning Timeline
- April-May: Start early investments like PPF
- June-September: ELSS SIPs and EPF planning
- October-December: Insurance and NSC investments
- January-March: Last-minute tax saver FDs
Important Considerations
- Diversify across asset classes for balanced portfolio
- Consider liquidity needs and lock-in periods
- Don't invest just for tax savings, focus on returns
- Review and rebalance portfolio annually
Section 80C Investment Options Comparison
| Investment | Returns | Lock-in Period | Risk Level | Liquidity | Tax on Maturity |
|---|---|---|---|---|---|
| ELSS Mutual Funds | 12-15% | 3 years | High | Medium | LTCG if > ₹1L |
| PPF | 7.1% | 15 years | Low | Low | Tax Free |
| EPF | 8.25% | Till Retirement | Low | Low | Tax Free (5 yrs service) |
| NSC | 6.8% | 5 years | Low | Low | Taxable |
| Life Insurance | 4-6% | Policy Term | Low | Low | Tax Free (conditions apply) |
| Tax Saver FD | 5-6% | 5 years | Very Low | Low | Taxable |
Tax Saving Strategy by Age Group
20s - 30s (Young Professionals)
Aggressive Growth
- • 60% ELSS (₹90,000)
- • 25% PPF (₹37,500)
- • 15% Life Insurance (₹22,500)
Focus on wealth creation with higher equity exposure. Long investment horizon allows for higher risk-taking.
30s - 40s (Established Career)
Balanced Approach
- • 40% ELSS (₹60,000)
- • 40% PPF (₹60,000)
- • 20% Life Insurance (₹30,000)
Balance between growth and stability. Increased insurance coverage for family protection and wealth accumulation.
40s+ (Pre-Retirement)
Conservative Stability
- • 25% ELSS (₹37,500)
- • 50% PPF (₹75,000)
- • 25% NSC/FD (₹37,500)
Focus on capital preservation and steady returns. Reduce equity exposure as retirement approaches.
Annual Tax Planning Timeline
Financial Year Start Planning
Start early investments like PPF (₹12,500/month for ₹1.5L). Begin ELSS SIPs for rupee cost averaging benefits.
Action Items: Set up PPF account, start ELSS SIPs, review life insurance
Mid-Year Review
Review investment performance and salary increments. Adjust EPF contributions and plan additional investments.
Action Items: Increase EPF voluntary contribution, review portfolio allocation
Festival Season Planning
Utilize bonus and festival money for tax saving investments. Consider NSC, additional life insurance premiums.
Action Items: Invest bonus in ELSS, pay annual insurance premiums
Last-Minute Tax Saving
Complete pending 80C investments. Consider tax-saver FDs for any remaining limit. Plan for next financial year.
Action Items: Lump sum ELSS investment, tax-saver FD, submit proofs to employer
Common Tax Planning Mistakes to Avoid
Last-Minute Rush
Investing entire ₹1.5L in March leads to poor investment choices and missed opportunities for SIP benefits.
Insurance as Investment
Buying high-premium life insurance policies just for tax saving. Term insurance + investment is usually better.
Ignoring Returns
Focusing only on tax savings without considering returns and inflation. Tax saving should align with wealth creation goals.
Not Diversifying
Putting all money in one investment type. Diversification across ELSS, PPF, and insurance provides better risk management.
Wrong Tax Regime Choice
Choosing new tax regime without calculating total deductions. With significant 80C investments, old regime might be better.
Forgetting Lock-in Periods
Not considering liquidity needs. Emergency funds should be separate from tax-saving investments with lock-in periods.
Financial Calculator FAQs
Everything you need to know about income tax calculations
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.
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