Tax Saved on Insurance Calculator
Estimate the income tax you could save on your life and health insurance premiums under Sections 80C and 80D (old tax regime).
Estimated tax saved
₹39,000
On ₹1,25,000 of deductions at 30% + cess
Breakdown
Illustrative estimate for the old tax regime, not tax advice. The new regime does not allow these deductions. Confirm with a tax professional.
How it's calculated
- 1Life insurance premium qualifies under Section 80C, capped at the overall 80C limit of Rs 1.5 lakh.
- 2Health insurance premium qualifies under Section 80D, subject to the applicable limit.
- 3Eligible deductions are added, then multiplied by your marginal tax rate plus 4% cess to estimate the tax saved.
- 4These deductions apply under the old tax regime; the new regime does not allow them.
Why use this
- Show clients the real, after-tax cost of their cover.
- Make the tax benefit of a policy concrete during a review.
- Compare the value of topping up 80C or 80D.
- Download a branded PDF to share the saving.
Frequently asked questions
How much tax can I save on insurance premiums?+
Life insurance premiums can be deducted under Section 80C up to the overall Rs 1.5 lakh limit, and health insurance premiums under Section 80D up to the applicable limit. Your saving is the eligible deduction multiplied by your marginal tax rate plus cess. This calculator estimates it.
Do these deductions apply in the new tax regime?+
No. Sections 80C and 80D deductions are available under the old tax regime. If you have opted for the new regime, these premiums do not reduce your taxable income. This calculator models the old regime.
What is the 80C limit?+
Section 80C has a combined limit of Rs 1.5 lakh across eligible items such as life insurance premium, PPF, ELSS, and more. If other 80C investments already use part of the limit, only the remaining room applies to your premium.
What is covered under 80D?+
Section 80D covers health insurance premiums for yourself, family, and parents, with higher limits when senior citizens are involved. Choose the limit that applies to you in the calculator.
Is this a substitute for tax advice?+
No. It is an illustrative estimate. Tax rules and limits change and depend on your full return, so confirm with a tax professional before filing.
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