With Mother’s Day 2026 around the corner, tax planning can also become an opportunity for mothers to strengthen long-term financial security while optimising tax savings. The Income-tax Law provides several investment avenues that continue to provide deductions and retirement-oriented benefits. Some of the key tax-saving investments and deductions that mothers may consider for FY 2026-27 are as follows:

Investments eligible under Section 80C / Section 123

Mothers opting for the old tax regime may claim a deduction under Section 123 of the ITA 2025 (corresponding to Section 80C of the ITA 1961) for specified investments, subject to the prescribed threshold limit of Rs. 1.5 lakhs. Some popular options include:

  • Public Provident Fund (PPF)
  • Employees’ Provident Fund (EPF)
  • Equity Linked Savings Schemes (ELSS)
  • Tax-saving fixed deposits
  • Life insurance premiums
  • Sukanya Samriddhi Yojana (SSY)
  • Repayment of housing loan principal

As per CA (Dr.) Suresh Surana, these investments not only help reduce taxable income but also support disciplined long-term savings and wealth creation.

National Pension System (NPS) 

Contributions made towards the National Pension System (NPS) may qualify for an additional deduction of up to Rs. 50,000 under Section 124(3) of the ITA 2025 (corresponding to Section 80CCD(1B) of the ITA 1961), over and above the regular Section 80C deduction limit. 

“NPS may be particularly beneficial for working mothers seeking retirement planning, long-term wealth accumulation and tax efficiency simultaneously,” added CA (Dr.) Suresh Surana. 

Health insurance deduction under Section 80D / Section 127

Premiums paid towards medical insurance for self, spouse, children and dependent parents may qualify for a deduction under Section 80D of the ITA 1961 (corresponding to Section 127 of the ITA 2025), subject to prescribed conditions and limits. The deduction is available up to Rs. 25,000 for self and family, with an additional Rs. 25,000 for parents. Where the insured person is a senior citizen, the limit increases to Rs. 50,000. 

“The provision also covers preventive health check-ups within prescribed limits. This may help mothers manage healthcare security for both children and aging parents in a tax-efficient manner,” commented CA (Dr.) Suresh Surana. 

Tuition fees for children

Tuition fees paid for children’s education in India may also qualify for deduction under Section 80C of the ITA 1961 / Section 123 of the ITA 2025, subject to specified conditions. This provision may be relevant for mothers planning for school or higher education expenses while simultaneously optimising tax outflows.

Sukanya Samriddhi Yojana (SSY) for girl child

Investments made in Sukanya Samriddhi Yojana accounts for a girl child continue to remain one of the most tax-efficient savings avenues due to their exempt-exempt-exempt (EEE) status. Contributions qualify for deduction under Section 80C of the ITA 1961 / Section 123 of the ITA 2025, while the interest earned and maturity proceeds remain exempt, subject to fulfilment of prescribed conditions.

Choice between old and new tax regimes

It is pertinent to note that most of the above deductions are generally available only under the old tax regime. 

“Taxpayers opting for the concessional tax regime under Section 115BAC of the ITA 1961 (corresponding to Section 202 under the ITA 2025) may not be eligible to claim several of these deductions, except those specifically permitted,” stated CA (Dr.) Suresh Surana. 

Accordingly, mothers should evaluate both tax regimes carefully based on their income profile, investment preferences, and long-term financial goals before making tax-saving decisions for FY 2026-27.