Tax Saving Investment Calculator

The best 80C investment depends on your financial goals and risk tolerance. ELSS offers the shortest lock-in period (3 years) and potential equity returns. PPF offers safety and tax-free returns with a 15-year lock-in. Tax-saving FDs offer guaranteed returns with a 5-year lock-in. Diversify across instruments for balanced tax savings.

Yes, you can claim 80D deduction for health insurance premiums paid for your parents. If your parents are senior citizens (60+), the deduction limit is 50,000. If they are below 60, the limit is 25,000. Combined with your own 80D limit of 25,000, the total can be up to 75,000.

The 80C deduction is capped at 1,50,000. Any investment beyond this limit does not qualify for additional tax deduction. However, the returns on these investments may still be tax-free (as in PPF) or taxable (as in ELSS gains) depending on the instrument.

Yes, Section 80E allows deduction for interest paid on education loans taken for higher education of yourself, your spouse, or your children. There is no upper limit on the deduction amount, but it is available only for a maximum of 8 years from the year you start repaying the loan. The principal repayment does not qualify for deduction.

Tax avoidance is the legal use of available deductions and exemptions (such as 80C, 80D, and 80G) to minimise your tax liability through legitimate investments and expenses. Tax evasion, on the other hand, involves illegally concealing income or claiming false deductions. All deductions claimed must be supported by documentary evidence and actual transactions to avoid penalties under the Income Tax Act.

Yes, tuition fees paid for the full-time education of up to two children are eligible for deduction under Section 80C within the overall limit of ₹1.5 lakh. The deduction covers fees paid to any school, college, university, or other educational institution in India. Fees for play school, donation or capitation fees, and fees paid for any activity or sport are not eligible. The child must be financially dependent on you.

Section 80CCD(1B) provides an additional deduction of up to ₹50,000 for voluntary contributions to the National Pension System (NPS), over and above the ₹1.5 lakh limit under Section 80C. This means you can claim total deductions of up to ₹2 lakh under Section 80C and 80CCD(1B) combined. The 80CCD(1B) deduction is available only in the old tax regime and is not available under the new tax regime.

Yes, expenses incurred on preventive health check-ups qualify for deduction under Section 80D, subject to the overall limit of ₹25,000 (or ₹50,000 for senior citizens). Preventive health check-up expenses up to ₹5,000 per year are deductible without requiring payment by cheque, i.e., cash payments are allowed. This includes expenses for blood tests, full-body check-ups, and diagnostic scans recommended by a physician.

Section 80G allows deduction for donations to registered charitable trusts and funds. Donations to the PM Relief Fund, PM CARES Fund, and Chief Minister's Relief Fund qualify for 100% deduction without any qualifying limit. Donations to other institutions approved under Section 80G qualify for 50% or 100% deduction, but the total deduction is capped at 10% of the donor's adjusted gross total income. Donations must be made by cheque, DD, or online transfer, and a valid 80G certificate must be obtained.

Section 80E allows an unlimited deduction for interest paid on education loans taken for higher education of yourself, your spouse, your children, or a student for whom you are the legal guardian. There is no upper monetary limit on the deduction amount, but it is available only for a maximum of 8 consecutive years starting from the year in which you begin repaying the interest. The principal amount repayment does not qualify for any deduction under Section 80E.