Tax Saving Calculator

Understanding Tax Saving

The government provides tax-saving investment options for both salaried individuals and self-employed professionals to help reduce their tax burden. Tax exemptions and deductions allow taxpayers to save money by lowering their taxable income. One of the most widely used tax deductions is under Section 80C of the Income Tax Act, 1961, which allows a maximum deduction of ₹1.5 lakh per year on eligible investments and expenses.

Investments that qualify for deductions under Section 80C include:

Public Provident Fund (PPF)
Senior Citizens Savings Scheme (SCSS)
Employees' Provident Fund (EPF)
Voluntary Provident Fund (VPF)
Equity-Linked Savings Scheme (ELSS)
Tax-saving Fixed Deposits (FDs)
National Savings Certificate (NSC)
National Pension System (NPS)
Selected Post Office Savings Schemes
Sukanya Samriddhi Scheme

What is a Tax Saving Calculator?

A Tax Saving Calculator is an online tool that helps estimate the amount of tax you can save by utilizing Section 80C deductions. This tool helps determine tax savings based on eligible investments and expenses up to ₹1.5 lakh per financial year.

How Does a Tax Saving Calculator Work?

Let’s take an example:

Gross taxable income: ₹9,00,000 per annum
Standard deduction: ₹50,000
Investment in ELSS: ₹1.5 lakh
Taxable income after deductions: ₹7,00,000
Tax savings: ₹40,500