About the Deductions Optimizer
What is the Deductions Optimizer?
Many taxpayers in the old regime leave deductions unused. This tax deductions optimizer shows how much room you still have under Section 80C (₹1.5 lakh), 80D (₹25,000–₹1 lakh) and 80CCD(1B) NPS (₹50,000), and what using it would save.
Enter your salary, HRA exemption, current deductions and home-loan interest. The optimizer compares your old-regime tax now, your old-regime tax with every limit used, and your new-regime tax — so you can see whether topping up investments is worth it at all.
How to use the Deductions Optimizer
- Your Age (sample: Below 60 years)
- Gross Salary (₹ per year) (sample: 18,00,000)
- HRA Exemption (₹) (sample: 0)
- Current 80C Investments (₹) (sample: 80,000)
- Current 80D Premiums (₹) (sample: 15,000)
- Parents Aged 60+ (for 80D)? (sample: Yes)
- Current NPS – 80CCD(1B) (₹) (sample: 0)
- Home Loan Interest (₹) (sample: 0)
- Press Optimise My Deductions (results also refresh as you type). The result card shows the Extra Tax You Can Save, along with Old-regime tax now, Old-regime tax with deductions maxed, New-regime tax and Verdict.
Formula used
Extra saving = Old tax (current deductions) − Old tax (all limits used)
- Limits = 80C ₹1.5 lakh; 80D ₹25,000/₹50,000 each for self and parents; 80CCD(1B) ₹50,000
Home-loan interest is counted as it is — you cannot increase it just to save tax.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Your Age | Below 60 years |
| Gross Salary (₹ per year) | 18,00,000 |
| HRA Exemption (₹) | 0 |
| Current 80C Investments (₹) | 80,000 |
| Current 80D Premiums (₹) | 15,000 |
| Parents Aged 60+ (for 80D)? | Yes |
| Current NPS – 80CCD(1B) (₹) | 0 |
| Home Loan Interest (₹) | 0 |
| Result | Value |
|---|---|
| Extra Tax You Can Save | ₹56,160 |
| Old-regime tax now | ₹3,21,360 |
| Old-regime tax with deductions maxed | ₹2,65,200 |
| New-regime tax | ₹1,50,800 |
| Verdict | New regime is still cheaper – extra investing only for tax is not worth it |
Tips for using the Deductions Optimizer
- NPS 80CCD(1B) is the one deduction over and above the ₹1.5 lakh 80C limit.
- Health insurance for senior parents gives up to ₹50,000 of deduction and valuable cover.
- If the new regime is still cheaper after maxing everything, choose it and invest freely.