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Want to know how much you need to invest to save tax? Use this calculator to find out

Depending on the kind savings or expenditures you incur, under sections 80C and 80CCD1b of the Income-Tax Act, you are eligible for certain tax deductions.

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Last Updated: Jan 23, 2020, 12.55 PM IST
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By Sudhir Kaushik of Taxspanner

Yet to complete your tax-saving investments? Many taxpayers are not aware of the investments and expenses that are eligible for tax deduction under Sec 80C and Sec 80CCD1b. Use this tax planning calculator to know how much more you need to invest to save tax this year.

Saving or expense What’s eligible for deduction Example Your figures
PF and NPS Your contribution to the Provident Fund or the
NPS as part of the mandatory retirement
savings are eligible for deduction under Sec 80C.
Rs 48,000 Note: Don’t include
the matching
contribution by
your employer.
Voluntary PF Additional voluntary contributions to Provident
Fund get the same tax benefit.
NPS Under Sec 80CCD(1b), up to Rs 50,000 put in NPS
is deductible. This is over and above the Rs 1.5
lakh deduction under Sec 80C.
Rs 50,000 Note: This additional
deduction is
only for NPS.
Insurance policies,
pension plans and
SIPs in ELSS funds
Premiums of existing life insurance policies,
Ulips and pension plans and ongoing SIPs of
ELSS funds.
Rs 12,000 Note: Include only if
payment made
during 2019-20.
Tuition fee Tution fee paid for full-time education of up to
two children. Playschool fees is also eligible
for deduction.
Rs 18,000
Interest on
NSCs
Compound interest that accrues on NSCs
during the year is deemed to be reinvested
and can be claimed as deduction.
Rs 780 Note: Use an online
calculator to
know interest.
Home loan
repayment
The principal portion of home loan EMIs is
deductible, including home loan prepayments
during the financial year.
Rs 23,000
Stamp duty and
registration
Stamp duty and registration charges for house
bought during the financial year can be claimed
as deduction.
Note: House should be
in the name of
taxpayer.
A. Total Rs 1,51,780
B. Maximum
deduction limit
Rs 1.5 lakh (Sec 80C) + Rs 50,000 (Sec 80CCD1b) = Rs 2,00,000
C. Balance to be
invested
B-A = Rs 48,220 Note: Needs to
invest Rs 48,220
more for full
deduction.

Also read: Can these deductions make you tax free?
Click here for all the information and analysis you need for tax-saving this financial year
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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