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Tax Deduction Calculator — Estimate Tax Savings India

Calculate your deductions under Section 80C, 80D, HRA and more. Compare old vs new tax regime to find which saves you more. Instant, free, and private.

Deductions (Old Regime)

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Free Tax Deduction Calculator India

OptiDrop's Tax Deduction Calculator helps Indian taxpayers estimate their deductions under various sections of the Income Tax Act and compare the old vs new tax regime. Enter your income and deductions to instantly see which regime saves you more tax.

Key Tax Deduction Sections

Section 80C: Up to Rs. 1.5 lakh for PPF, ELSS, EPF, life insurance, home loan principal, tuition fees, NSC, and more. Section 80D: Up to Rs. 1 lakh for health insurance premiums (Rs. 25,000 for self + Rs. 25,000-50,000 for parents). HRA Exemption: Tax exemption on House Rent Allowance for salaried individuals paying rent. Section 24b: Up to Rs. 2 lakh deduction on home loan interest.

Old vs New Tax Regime

The old regime offers higher tax rates but allows all deductions and exemptions. The new regime (default from FY 2023-24) has lower rates but disallows most deductions. The new regime offers a standard deduction of Rs. 50,000 and a tax rebate up to Rs. 7 lakh income. Use this calculator to compare both and choose the one that saves you more. All calculations happen in your browser with complete privacy.

Frequently Asked Questions

Section 80C allows deductions up to Rs. 1.5 lakh per year on investments and expenses like PPF, ELSS mutual funds, EPF, life insurance premiums, home loan principal repayment, children's tuition fees, NSC, and 5-year fixed deposits. This is the most popular tax-saving section in India.
The old tax regime allows you to claim deductions and exemptions but has higher tax rates. The new tax regime (default from FY 2023-24) has lower tax rates but does not allow most deductions like 80C, 80D, HRA etc. The new regime offers a standard deduction of Rs. 50,000 for salaried individuals. You should compare both regimes to see which saves you more tax.
HRA (House Rent Allowance) exemption is available under the old tax regime for salaried individuals who pay rent. The exempt amount is the minimum of: actual HRA received, 50% of basic salary (metro cities) or 40% (non-metro), or actual rent paid minus 10% of basic salary. You need rent receipts to claim this exemption.
Choose the old regime if your total deductions and exemptions (80C, 80D, HRA, home loan interest, etc.) exceed the standard deduction benefit of the new regime. Generally, if you have significant investments under 80C, pay rent, have a home loan, or high medical insurance premiums, the old regime may be better. Otherwise, the new regime with lower rates may save more. Use this calculator to compare both.

Last updated: June 2026