Tax Saving Planner

Old regime vs new regime — which one wins?

From FY 2023-24 onwards the new regime is the default, but the old regime still wins for most salaried Indians who can claim meaningful deductions. The break-even at ₹12 lakh income sits roughly at ₹2.5 lakh in combined deductions (80C + 80D + 24b + HRA + standard). Below that, the new regime's lower slab rates win; above it, the old regime's deduction stack wins. The planner above does this maths for you in real time.

80C — pick instruments by what they actually return

Every 80C option saves the same tax — at the 30% slab, ₹1.5 lakh in any 80C product saves ₹46,800. The differentiator is what happens after the lock-in. ELSS averages 12–14% over a 3-year window with the shortest lock-in in 80C. PPF delivers ~7% sovereign-guaranteed for 15 years. EPF and VPF run at ~8%. 5-year tax-saving FD pays bank deposit rates with the longest lock-in for the lowest return. Most analyses rank ELSS > PPF/EPF > LIC endowment > FD for new investors with a long horizon.

NPS — the extra ₹50,000 most people miss

80CCD(1B) gives a separate ₹50,000 deduction on top of the ₹1.5 lakh 80C cap. At the 30% slab that's ₹15,000 in annual tax saving on a single NPS contribution — and the corpus compounds at 9–11% blended (equity + corporate debt + gilts) until age 60. Anyone in the 20% or 30% slab who isn't using this is leaving money on the table.

Health insurance — double benefit

80D lets you deduct ₹25,000 for self/family premium and another ₹25,000 (₹50,000 if parents are 60+) for parents. At the 30% slab a ₹25,000 premium saves ₹7,500 in tax — the cover is effectively 30% off. Skipping health insurance to save cash-flow makes no financial sense; the cover is more valuable than the discount.

From planner to product

Once the planner shows your remaining 80C headroom, fill it with ELSS funds — direct-growth, ranked by 5-year rolling returns. For the 80D piece, see health insurance plans comparing CSR and network hospitals. Read the longer write-up on ELSS vs PPF vs FD and the post-tax-rule guide on STCG / LTCG on mutual funds for the broader picture.

Disclaimer: Slabs reflect FY 2025-26 budget announcements. Tax outcomes depend on individual exemptions and surcharge thresholds; always confirm with a CA before filing.