Do tax-saving investments help under the new regime?

No. The new regime does not allow the section 123 or section 124(3) deductions. Only someone filing under the old regime saves tax by making them.

What is the shortest lock-in?

ELSS mutual funds, at three years. PPF runs fifteen years; NSC, SCSS and tax-saver deposits five.

Which tax-saving investments have tax-free returns?

PPF and the Sukanya Samriddhi Account pay out tax-free. NPS pays up to 60% of the corpus tax-free on exit. ELSS gains are taxed as equity gains; interest on NSC, SCSS and deposits is taxed at your slab rate.

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Tax-Saving Investments

Under the old regime, investments listed in Schedule XV of the Income-tax Act, 2025 reduce taxable income by up to ₹1,50,000 (section 123), and NPS by up to ₹50,000 more (section 124(3)). The new regime allows neither, so check which regime you file under first.

Salary for the year (₹)

Other income (₹)

Already counting towards ₹1.5 lakh (₹)

EPF, tuition fees, home-loan principal, premiums. ₹90,000 of room left.

New section 123 investment (₹)

NPS, own contribution (₹)

Up to ₹50,000 extra

Old-regime tax these investments save

₹43,680

Old regime, before: ₹3,32,280
Old regime, after investing: ₹2,88,600
New regime (no deductions): ₹1,50,800

Even after these investments, the new regime costs ₹1,37,800 less. Invest for the returns, not the deduction.

Rates used, FY 2026-27 (AY 2027-28)

Schedule XV investments: Up to ₹1,50,000Income-tax Act, 2025, section 123
NPS, own contribution: Up to ₹50,000 moreIncome-tax Act, 2025, section 124(3)

Checked against the gazetted Acts on 2 Oct 2026. Income-tax Act, 2025 on incometax.gov.in

The options side by side

Rates for October to December 2026. Your EPF contribution, tuition fees for up to two children, and home-loan principal repayment also count towards the ₹1.5 lakh.

Investment	Lock-in	Returns	Tax on returns	Deduction
ELSS mutual fundsThe shortest lock-in; the only one invested in shares.	3 years	Market-linked	Gains taxed as equity: 12.5% above ₹1.25 lakh a year	Section 123, Schedule XV 1(m)
Public Provident FundTax-free under Schedule II item 3.	15 years	7.1% a year, set each quarter	Interest and maturity tax-free	Section 123, Schedule XV 1(e)
Sukanya Samriddhi AccountFor a girl child; payments tax-free under Schedule II item 5.	Matures 21 years after opening	8.2% a year, set each quarter	Tax-free	Section 123, Schedule XV 1(h)
National Savings Certificate	5 years	7.7% a year, compounded, paid at maturity	Interest taxed at your slab rate	Section 123, Schedule XV 1(i)
Senior Citizens Savings SchemeFor those 60 and over.	5 years	8.2% a year, paid quarterly	Interest taxed at your slab rate	Section 123, Schedule XV 1(u)
Post Office 5-year Time Deposit	5 years	7.5% a year	Interest taxed at your slab rate	Section 123, Schedule XV 1(v)
Bank tax-saver fixed deposit	5 years	Set by each bank	Interest taxed at your slab rate	Section 123, Schedule XV 1(s)
Life insurance premiumSchedule II item 2 sets the maturity conditions.	Policy term	Depends on the plan	Maturity tax-free if the premium is at most 10% of the sum assured and, for policies from 1 Apr 2023, total premiums are within ₹5 lakh (₹2.5 lakh for ULIPs)	Section 123, Schedule XV 1(a)
National Pension System (own contribution)Schedule II item 6 for the tax-free 60%.	Until 60	Market-linked	Up to 60% of the payout on exit tax-free; the rest buys a taxable pension	Section 124(3): up to ₹50,000 more, beyond the ₹1.5 lakh

Lock-ins come from each scheme's own rules; deductions and tax treatment from the Income-tax Act, 2025 (Schedules XV and II). Market-linked returns are not guaranteed.