What is 80C Tax Savings?
Section 80C of the Income Tax Act lets you claim up to ₹1.5 lakh in deductions each year from a wide range of investments and expenses. With an additional ₹50,000 under 80CCD(1B) for NPS, you can reduce your taxable income by up to ₹2 lakh. This is the single biggest tax-saving lever for most salaried Indians.
Formula
Total deduction combines 80C and the extra NPS limit:
80C limit = ₹1,50,000/year (PPF, ELSS, EPF, NSC, tax-saving FD, life insurance, tuition fees, SSY, etc.) 80CCD(1B) = extra ₹50,000 for NPS (over and above 80C) Tax saved = deduction × your slab rate e.g. ₹2,00,000 × 30% = ₹60,000 saved
How to use this calculator
Enter your current or planned investments under each eligible head. The calculator tracks usage against the ₹1.5 lakh 80C limit and the separate ₹50,000 NPS (80CCD-1B) limit, and shows the estimated tax saved at the 30% slab.