Save More with These Income Tax Deductions!
Are you a salaried employee looking to reduce your tax liability? You can legally lower your taxable income and save money using various deductions. Here’s how you can make the most of tax-saving options in FY 2024-25.
- Essential Tax Deductions You Must Know
Standard Deduction (Flat ₹50,000)
Every salaried individual gets a standard deduction of ₹50,000. This applies to both the old and new tax regimes.
House Rent Allowance (HRA) – Section 10(13A)
If you live in a rented house, you can claim HRA exemption. The deduction is the least of:
* Actual HRA received
* 50% of salary (metro) or 40% of salary (non-metro)
* Rent paid minus 10% of salary - Popular Tax-Saving Investments
Deductions Under Section 80C (Limit: ₹1.5 Lakh)
You can invest in the following to claim deductions:
* Employee Provident Fund (EPF)
* Public Provident Fund (PPF)
* Life Insurance Premiums
* ELSS Mutual Funds
* 5-Year Fixed Deposits
National Pension System (NPS) – Section 80CCD
* Additional ₹50,000 deduction over and above the 80C limit under Section 80CCD(1B).
* Employer’s contribution (up to 10% of salary) is deductible under Section 80CCD(2). - Health & Home Loan Deductions
Medical Insurance – Section 80D
* Self, spouse, children → ₹25,000
* Parents (below 60) → ₹25,000
* Parents (above 60) → ₹50,000
Home Loan Interest – Section 24(b) & 80EEA
* ₹2 lakh deduction on home loan interest under Section 24(b).
* First-time homebuyers can claim an additional ₹1.5 lakh under Section 80EEA.
Did You Know?
You can claim an additional ₹5,000 for preventive health check-ups under Section 80D!
Final Thoughts
By utilizing these deductions wisely, you can save thousands in taxes. Invest smartly and make the most of your hard-earned money!
