Tax Saving Option: There are only a few days left for the financial year 2024-25 to end. Taxpayers have the last chance to invest to save tax till March 31, 2025. If you come under the Old Tax Regime, you can reduce your tax liability by investing in schemes like NPS, PPF, ELSS. After this, the Income Tax Return (ITR) filing season will start from April 1, 2025.
How can you save tax?
Section 80C (deduction up to Rs 1.5 lakh)
EPF (Employees Provident Fund)
PPF (15 years lock-in period, tax free returns)
National Savings Certificate (NSC) – 5 years maturity
Tax-saving FD – Lock-in period of 5 years
ELSS Mutual Funds – Lock-in period of 3 years
Life insurance premium
Sukanya Samriddhi Yojana (Savings Scheme for Daughters)
Tuition fees for children
Discount on home loan principal
Section 80D (Deduction on Health Insurance)
Discount up to Rs 25,000 for self, family and children
Up to Rs 50,000 exemption for parents (senior citizens)
Additional Rs 5,000 discount on health checkup
Section 80E (Deduction on Education Loan)
Full exemption on interest on loan taken for higher education
Exemption is available up to a maximum of 8 years
Section 80EE and 80EEA (Additional benefits on home loan)
Up to Rs 50,000 discount for first-time home buyers
Additional discount of up to Rs 1.5 lakh for affordable houses
Section 80G (Deduction on donations)
50% to 100% deduction on donations
Section 80GG (rent exemption)
If HRA is not available in salary, then exemption of up to Rs 60,000 per annum is allowed
Section 24(b) (deduction on home loan interest)
Exemption of Rs 2 lakh per annum for self-occupied house
No upper limit on houses given on rent
Discount on NPS (National Pension Scheme)
80CCD(1): Up to 10% of salary (20% for self-employed)
80CCD(1B): Additional deduction of up to Rs 50,000 in NPS
80CCD(2): Deduction on contributions made by employer
Section 80TTB (Exemption for Senior Citizens)
Up to Rs 50,000 discount on savings account, FD and post office deposits
ITR filing season will start from April 1
After March 31, the process of ITR filing will start from April 1, 2025. Salaried employees will get Form 16, which will contain complete details of their salary and TDS. This verifies that your tax has been deducted. If you want to save tax, then definitely invest before March 31, so that there is no hassle while filing ITR later.