Income Tax Deductions & Exemptions Calculator – India (2025)

Understanding Income Tax Deductions and Exemptions

Deductions and exemptions play a crucial role in reducing your taxable income under India’s Old Tax Regime. They are designed to encourage savings, investment in insurance and retirement, and support for health expenses.

1. Section 80C (Limit ₹1.5 lakh)

Includes investments in ELSS, PPF, LIC premium, 5-year FD, Sukanya Samriddhi Yojana, and principal repayment of home loans.

2. Section 80D (Limit ₹25,000)

Allows deduction on health insurance premiums for self, spouse, children, and parents. ₹50,000 for senior citizens.

3. Section 80CCD(1B) – NPS (₹50,000 extra)

This is over and above 80C. Contributions to NPS help in long-term retirement planning and save taxes.

4. Standard Deduction (₹75,000 in tool)

Applicable to all salaried employees and pensioners. Automatically deducted from gross income.

5. HRA Exemption

Based on actual HRA received, rent paid, and city of residence. Can be claimed with rent receipts and proof.

Who Should Use This Tool?

• Salaried employees filing taxes under the Old Regime
• Individuals planning year-end tax-saving investments
• CA firms offering advisory tools to clients

This tool gives you a quick estimate of your eligible deductions and helps you choose whether to stay with the old regime or shift to the new one. Combine this with a full income tax calculator for more accuracy.