Maximise your tax savings with deductions

Name: Salary Calculator
Brand: Superworks
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See how much tax you save by claiming all eligible Old Regime deductions — 80C, 80D, NPS, home loan, HRA, and more.

All Sections Live Calculation Visual Breakdown

Income & deductions

Enter your annual income and each section\'s contribution to see tax saved under Old Regime.

Annual income

Section 80C (max ₹1.5L)

Section 80D — Health insurance (max ₹1L)

NPS 80CCD(1B) (max ₹50K)

Section 24 — Home loan interest (max ₹2L)

HRA exemption

Tax saved this year

₹68,640

Annual tax saved using Old Regime deductions

Annual income₹12.00 L

80C₹1.50 L (max ₹1.5 L)

80D₹25,000 (max ₹1 L)

NPS 80CCD(1B)₹50,000 (max ₹50K)

Home loan₹0 (max ₹2 L)

HRA₹0

Total deductions₹2.75 L

Tax without deductions₹1.40 L

Tax with deductions₹71,500

How tax saving works (Old Regime)

Each deduction reduces taxable income, which lowers tax owed. The tax saving = (taxable without deductions − taxable with deductions) × applicable slab rate.

01
Sum eligible deductions
Add up all section-wise deductions (80C, 80D, NPS, home, HRA).
```
total = 80C + 80D + NPS + home + HRA
+ std_deduction
```
02
Compute taxable income
Subtract deductions from gross income.
```
taxable = income − total
```
03
Tax saved
Tax savings = (tax without deductions) − (tax with deductions).
```
saved = tax_no_ded − tax_with_ded
```

FormulaSaved = Tax(income − std) − Tax(income − std − all_deductions)Highest impact deductions: 80C ₹1.5L, home loan interest ₹2L, NPS ₹50K, HRA (uncapped).

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Statute

Sections 80C–80U Income Tax Act

All deduction sections including 80C (₹1.5L), 80D, 80E, 80CCD.

Latest Budget

Union Budget 2024

Latest changes affecting deduction limits and tax planning.

Tax SaaS

ClearTax 80C Guide

Complete reference for all Section 80C-eligible instruments.

Payroll

RazorpayX Tax Declaration

Employer-side tax declaration and proof submission engine.

Standard

ICAI Tax Reference

Professional standard for direct tax computation in India.

Govt Schemes

PPF / ELSS / NPS Portals

Official portals for major tax-saving instruments.

FAQs about tax saving

What instruments qualify for 80C?

EPF/VPF, ELSS mutual funds, PPF, tax-saver FDs (5-year), NSC, life insurance premium, home loan principal, Sukanya Samriddhi, NPS Tier I, ULIP, tuition fees. Total cap ₹1.5L combined.

What is 80D — health insurance?

₹25K (self+spouse+kids) + ₹25K (parents) + ₹25K extra for senior citizen parents. Max ₹1L total. Preventive health check-up ₹5K within these limits.

Is NPS 80CCD(1B) extra to 80C?

Yes. ₹50K under 80CCD(1B) for NPS Tier I is OVER AND ABOVE the ₹1.5L 80C limit. This is the only true "extra" tax-saving instrument.

How is HRA exemption calculated?

Least of three: (a) actual HRA received, (b) rent paid − 10% of basic salary, (c) 50% basic (metro) or 40% (non-metro). Submit rent receipts to employer.

What is 80E — education loan?

Full interest on education loan (no upper cap) deductible for up to 8 years from when EMIs start. Loan must be for self, spouse, or children's higher education.

Donations under 80G?

50-100% deduction depending on the institution. PM CARES, PMNRF: 100%; most NGOs: 50%. Must have PAN-validated receipt. Some institutions have qualifying income caps.

LTA — Leave Travel Allowance?

Exempt twice in a block of 4 years for domestic travel. Lower of: actual travel cost OR LTA amount. Train AC-1 or air economy fare. Family included.

Are tax-saving FDs worth it?

Locked for 5 years; interest taxable. Returns lower than ELSS (3-year lock-in) but lower risk. Best for those preferring guaranteed returns over equity exposure.

Ready for the next step?

Pre-fill tax declarations in payroll

Superworks lets every employee submit tax-saving declarations digitally each year — auto-validated, auto-applied in monthly TDS, with Form 16 in one click.

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Maximise your tax savings with deductions

Income & deductions

How tax saving works (Old Regime)

Sum eligible deductions

Compute taxable income

Tax saved

Sections 80C–80U Income Tax Act

Union Budget 2024

ClearTax 80C Guide

RazorpayX Tax Declaration

ICAI Tax Reference

PPF / ELSS / NPS Portals

FAQs about tax saving

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