See exactly how much of your Rs 1.5 lakh basket is already used, the headroom left to invest, the extra Rs 50,000 NPS slot, your 80D health cover – and the tax you save. Built for the old regime, where these deductions apply. Verified by a practising CA.
Step 1 – What already counts towards 80C (automatic)
Only your share – employer’s share does not count.
Principal only – interest is separate (Sec 24b).
Step 2 – What you actively invest for 80C
Step 3 – Beyond the basket
Over and above the Rs 1.5 lakh limit.
Step 4 – Your marginal slab (to value the saving)
Old-regime slab on your top rupee of income.
Total Tax You Save This Year
Rs 0
80C / Section 123 basket usedRs 0 / Rs 1,50,000
80C headroom left to invest
Rs 0
NPS slot left (of Rs 50,000)
Rs 0
Total deductions claimed
Rs 0
Deduction limits at a glance – FY 2026-27 (old regime)
10% of basic+DA (old); 14% (new regime / govt) – allowed even in new regime
80D
Health insurance – self/family
Rs 25,000 (Rs 50,000 if senior)
80D
Health insurance – parents
Rs 25,000 (Rs 50,000 if senior) – extra
80TTA / 80TTB
Savings / deposit interest
Rs 10,000 / Rs 50,000 (seniors)
80E
Education loan interest
No limit (8 years)
How to actually max the basket – a CA’s order
Count the automatic first. Your EPF deduction and home loan principal often fill a big chunk of the Rs 1.5 lakh before you invest a rupee – many people over-invest because they forget these. Then fill the gap with the instrument that fits your goal: PPF/SSY for guaranteed tax-free growth, ELSS for equity with the shortest 3-year lock-in, NSC or a 5-year FD for fixed returns. Then take the NPS Rs 50,000 under 80CCD(1B) – at the 30% slab that is Rs 15,600 of tax saved for a slot nothing else can fill. Finally, 80D – health cover is a deduction you should be buying anyway. Under the new regime none of this applies, so confirm your regime first with our Income Tax Calculator.
Frequently asked questions
Does my employer’s PF contribution count towards my 80C?
No – only your own 12% share qualifies under 80C. The employer’s share is separate (and the employer’s NPS contribution gets its own deduction under 80CCD(2)).
Can I claim both the Rs 1.5 lakh and the Rs 50,000 NPS together?
Yes – 80CCD(1B)’s Rs 50,000 is over and above the Rs 1.5 lakh 80C basket, so you can claim up to Rs 2 lakh combined on these two fronts in the old regime.
Has 80C changed under the Income-tax Act 2025?
Only the number – 80C is now Section 123 with the eligible list in Schedule XV from 1 April 2026. The Rs 1.5 lakh limit and the instruments are unchanged. See our Section 123 guide.
Is the NPS extra Rs 50,000 worth it if my money is locked till 60?
For a long-horizon saver, the immediate tax saving (up to Rs 15,600 at 30%) plus market-linked growth is attractive – but weigh the lock-in and the taxable annuity at exit. It suits retirement money, not short-term funds.
Can I claim 80D in the new regime?
No – 80C, 80D and 80CCD(1B) are old-regime only. The new regime allows the employer NPS deduction (80CCD(2)) and the standard deduction, but not these.
Sources and accuracy: limits per the Income-tax Act (Sections 80C/80CCD/80D/80E, renumbered as Section 123 etc. under the Income-tax Act 2025) applicable for FY 2026-27 / AY 2027-28. Worked saving uses your stated marginal slab and excludes surcharge and cess for simplicity. Consult a qualified Chartered Accountant for filing. See also: Income Tax Calculator, NPS Calculator and PPF Calculator.
