Tax deduction calculator

Some of the investments you make and expenses you incur in a year are eligible for tax deduction. Use this worksheet to find how much deduction you can claim.

Taking note

• The premiums paid for life insurance policies for self, spouse or children are eligible for deduction under Section 80C.
• Medical insurance premium for self and family is deductible up to Rs 15,000 a year. If the taxpayer is a senior citizen, the deduction is Rs 20,000.
• If one pays for the medical insurance of parents, one can claim an additional deduction of up to Rs 15,000. If they are senior citizens, the deduction is up to Rs 20,000.
• Irrespective of the amount spent on a disabled or an ill person, deduction is available under Sections 80DD, 80DDB and 80U.
• In case of severe disability, the deduction is higher. If the sick dependant is a senior citizen, the deduction is Rs 60,000 under Section 80DDB.
• Only Rs 1.5 lakh of the interest paid on a housing loan is deductible in a year if the house is self-occupied.
• In case the house is rented, there is no limit on the deduction for the interest paid on the loan.
• In case one does not get house rent allowance but pays rent, one can claim deduction of up to Rs 2,000 a month under Section 80GG.
• Interest paid on an education loan is deductible only if it is taken for full-time education in a recognised institution based in India.
• The deduction for the interest paid on education loan under Section 80E can be availed of for eight years from the year of starting the repayment.

The tax equation
Your Gross Income – Deductions = Your taxable income
Once you have calculated the total deduction available to you, subtract this sum from your gross income. The income should include the following:

• Income from salary
• Income from business or profession
• Short-term capital gains (except from equity, equity funds)
• Rental income
• Interest income
• Income from other sources