Tax Saving Sections at a Glance
| Section | Deduction Limit | Eligible Investments/Expenses |
|---|---|---|
| 80C | ?1,50,000 | ELSS, PPF, LIC premium, NSC, Tax-saving FD, ULIP, Tuition fees, Home loan principal |
| 80CCD(1B) | ?50,000 | Additional NPS contribution (over and above 80C) |
| 80D | ?25,000-?1,00,000 | Health insurance premium, preventive health check-up |
| 24(b) | ?2,00,000 | Home loan interest (self-occupied property) |
| 80E | No limit | Education loan interest (for 8 years from repayment start) |
| 80G | 50%-100% | Donations to approved charities and funds |
| 80TTA/80TTB | ?10,000/?50,000 | Interest from savings account (80TTA) / Senior citizens all interest (80TTB) |
Best Tax-Saving Investments Ranked
1. ELSS Mutual Funds (Best Overall)
Shortest lock-in: 3 years. Highest potential returns: 12-15%. SIP option available. Only equity-linked tax saver. ?1 lakh LTCG tax-free.
2. NPS (Best for Additional Deduction)
Extra ?50,000 deduction under 80CCD(1B). Market-linked returns: 9-12%. Builds retirement corpus. 60% tax-free at maturity.
3. PPF (Best for Guaranteed Returns)
Currently ~7.1% interest, fully tax-free. Government guaranteed. EEE tax status (invest, earn, withdraw — all tax-free). 15-year lock-in with partial withdrawal after 6 years.
4. Tax-Saving FD (Best for Low Risk)
Guaranteed returns from banks. 5-year lock-in. No premature withdrawal allowed. Interest is taxable. Good for senior citizens.
Old vs New Tax Regime — Which to Choose?
Use our Tax Calculator to compare both regimes for your specific income. Generally:
Old Regime Is Better If
- Your total deductions exceed ?3-4 lakhs
- You have a home loan (Section 24 benefit)
- You pay high rent (HRA exemption)
- You invest significantly in 80C, 80D, NPS
New Regime Is Better If
- You have few deductions/investments
- You're a young professional with no loans
- You prefer simplicity over tax planning
- Your income is below ?7.5 lakh (rebate available)
Need Expert Guidance?
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