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 PlanningInvestment ComparisonTax Optimization₹1.5L Limit

Annual Gross Salary

₹

₹3L₹50L

Tax Regime

Old Tax Regime (with deductions)

Section 80C deductions available up to ₹1.5 lakh

Section 80C Investments

Employee Provident Fund (EPF)

₹

Equity Linked Savings Scheme (ELSS)

₹

Life Insurance Premium (LIC)

₹

Public Provident Fund (PPF)

₹

NSC

₹

Home Loan Principal

₹

Tuition Fees

₹

Other 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 Utilization73%

₹0₹1.5L

Section 80C Investment Options

ELSS

Returns:12-15%

Lock-in:3 years

Risk:

High

PPF

Returns:7.1%

Lock-in:15 years

Risk:

Low

EPF

Returns:8.25%

Lock-in:Retirement

Risk:

Low

NSC

Returns:6.8%

Lock-in:5 years

Risk:

Low

Life Insurance

Returns:4-6%

Lock-in:Long term

Risk:

Low

Tax Saver FD

Returns:5-6%

Lock-in:5 years

Risk:

Very Low

Personalized Recommendations

You can save ₹12,000 more in taxes by investing the remaining ₹40,000 limit.

Consider increasing ELSS investment for equity exposure with tax benefits.

PPF offers tax-free returns and should be considered for long-term goals.

Suggested Investment Strategy

High Returns (40%): ELSS for equity exposure and wealth creation

Stable Returns (40%): PPF for long-term tax-free growth

Insurance (20%): Term life insurance for protection

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

Apr-Jun

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

Jul-Sep

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

Oct-Dec

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

Jan-Mar

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.

Tax Saving Calculator FAQs

Everything you need to know about tax-saving investments, deductions, and Section 80C benefits

What is Section 80C and what's the maximum deduction limit?

Section 80C allows deduction from taxable income for specific investments and expenses. The maximum deduction limit is ₹1.5 lakh per financial year. This includes EPF, PPF, ELSS, life insurance premiums, home loan principal, NSC, tax-saving FDs, and children's tuition fees.

Which are the best tax-saving investments under Section 80C?

ELSS mutual funds offer the shortest lock-in period (3 years) with potential for higher returns (12-15%). PPF provides tax-free returns with 15-year lock-in. EPF is mandatory for salaried employees with 8.25% returns. Choose based on your risk appetite and liquidity needs.

Can I claim Section 80C deduction in the new tax regime?

No, Section 80C deductions are not available in the new tax regime. The new regime offers lower tax rates but doesn't allow most deductions except standard deduction. You need to choose the old tax regime to claim Section 80C benefits.

What is ELSS and why is it popular for tax saving?

ELSS (Equity Linked Savings Scheme) are mutual funds that invest primarily in equities and offer tax deduction under Section 80C. They have the shortest lock-in period of 3 years among all 80C options and potential for higher returns, making them popular for tax planning.

How does PPF work and what are its benefits?

PPF (Public Provident Fund) has a 15-year lock-in period with currently 7.1% annual returns. The entire corpus including principal, interest, and maturity amount is tax-free. You can make partial withdrawals from the 7th year and get loan facility from the 3rd year.

Can husband and wife both claim Section 80C separately?

Yes, both husband and wife can claim Section 80C deduction up to ₹1.5 lakh each, provided they make separate investments. Joint investments can be claimed by either spouse but not both. It's beneficial to plan investments separately to maximize total family tax savings.

What happens if I withdraw from tax-saving investments before maturity?

Most Section 80C investments have lock-in periods. Early withdrawal from ELSS (before 3 years), PPF (before 15 years), or NSC (before 5 years) can result in penalties and loss of tax benefits. Some investments like EPF allow early withdrawal with conditions.

How should I allocate my ₹1.5 lakh Section 80C limit?

A balanced approach: 40% in ELSS for growth potential, 40% in PPF for stability and tax-free returns, 20% in life insurance for protection. Adjust based on your risk profile, age, and financial goals. Diversification across asset classes reduces risk.

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