Tax Saving Guide for Salaried Employees
India offers numerous legal ways to reduce your tax burden. Understanding these options can save you lakhs every year.
Section 80C (Up to ?1.5 Lakh)
- ELSS Mutual Funds (shortest lock-in of 3 years)
- PPF (15-year lock-in, tax-free returns)
- Life Insurance Premium
- Children's Tuition Fees
- Home Loan Principal Repayment
- NSC, Tax-saving FD
Section 80D (Health Insurance)
Deduction up to ?25,000 for self/family and additional ?50,000 for senior citizen parents. Total savings possible: ?75,000.
Section 24 (Home Loan Interest)
Deduction up to ?2,00,000 on home loan interest for self-occupied property.
HRA Exemption
If you live in rented accommodation, HRA can save significant taxes. Even paying rent to parents is allowed.
NPS (Section 80CCD)
Additional ?50,000 deduction over and above Section 80C limit by investing in NPS.
Old vs New Tax Regime
The new regime offers lower rates but no deductions. If your deductions exceed ?3-4 lakhs, the old regime is usually better. Use our calculator to compare both.