Start with the regime
First decide between the new and old tax regime. Most tax-saving deductions apply only under the old regime — the new regime offers lower rates instead. If you use large deductions, the old regime often wins.
Section 80C (up to ₹1.5 lakh)
The biggest bucket. Eligible investments include:
- ELSS — tax-saving equity funds, 3-year lock-in (shortest).
- PPF — safe, tax-free, 15-year.
- NPS (under 80CCD), NSC, tax-saving FDs, life insurance premiums, and home-loan principal.
Beyond 80C
Stack more deductions: an extra ₹50,000 in NPS under 80CCD(1B); health insurance premiums under 80D; home-loan interest under 24(b); and HRA if you pay rent.
Plan, don’t rush
Choose tax-savers that also fit your goals — don’t buy a product just for the deduction. ELSS doubles as long-term equity growth; PPF as a safe debt allocation; NPS for retirement. Estimate your tax with the income tax calculator.
Frequently asked questions
What is the maximum tax I can save under 80C?
Up to ₹1.5 lakh of eligible investments can be deducted from taxable income under Section 80C; NPS adds a further ₹50,000 under 80CCD(1B).
Which is the best tax-saving investment?
It depends on your goals and risk appetite — ELSS for growth with the shortest lock-in, PPF for safety, NPS for retirement plus the extra deduction. Many use a mix.
Do tax savings work in the new regime?
Mostly no — most deductions (80C, 80D, HRA, home-loan interest) apply only under the old regime. The new regime gives lower rates instead.