First, choose your tax regime
The deductions below are available under the old tax regime. The new regime has lower slab rates but removes most of these deductions. Calculate your tax under both before deciding; we can help you compare.
Section 80C: up to ₹1.5 lakh a year
- ELSS mutual funds: shortest lock-in (3 years), market-linked returns
- PPF: government-backed, 15-year lock-in
- Employee Provident Fund (your contribution)
- Life insurance premiums, including term plans
- Principal repaid on a home loan
- Children's tuition fees, NSC, 5-year tax-saver FDs, Sukanya Samriddhi
Other important deductions
| Section | What it covers | Limit |
|---|---|---|
| 80CCD(1B) | Your own NPS contribution | ₹50,000 over and above 80C |
| 80D | Health insurance for self and family | ₹25,000 (₹50,000 for senior citizens) |
| 80D | Health insurance for parents | Additional ₹25,000 (₹50,000 if senior citizens) |
| 24(b) | Interest on a home loan for a self-occupied home | ₹2 lakh |
A simple tax plan that also builds wealth
- Buy term insurance and health insurance first: they protect you and qualify for 80C and 80D.
- Count what already qualifies: EPF, home loan principal, tuition fees.
- Fill the remaining 80C gap with ELSS SIPs from April, not a lump sum in March.
- Add NPS for the extra ₹50,000 under 80CCD(1B) if retirement savings suit you.
Tax rules change with each Budget. Confirm current limits with your tax advisor before filing.
Frequently asked questions
It depends on your goals. ELSS offers market-linked growth with a 3-year lock-in; PPF offers guaranteed, tax-free returns with a 15-year lock-in. Term insurance premiums also qualify.