Smart Ways to Keep More of What You Earn
Tax season often feels like a race against time for salaried employees. But with the right planning, you can reduce your taxable income and save a good amount every year—legally and efficiently. Here are some practical tax-saving tips to help you make the most of your salary.
1. Maximize Section 80C Deductions
Under Section 80C, you can claim deductions of up to ₹1.5 lakh per annum. Eligible options include:
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Employee Provident Fund (EPF)
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Public Provident Fund (PPF)
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Life Insurance Premiums
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ELSS Mutual Funds
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Tax-saving Fixed Deposits
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Tuition fees for children
Choose the instruments that align with your financial goals, not just for tax-saving purposes.
2. House Rent Allowance (HRA)
If you live in a rented home and receive HRA, you can claim exemption based on rent paid, salary structure, and city of residence. Keep rent receipts and a rental agreement to support your claims. If you don't receive HRA but pay rent, you can still claim a deduction under Section 80GG.
3. Health Insurance (Section 80D)
Premiums paid for health insurance are deductible up to:
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₹25,000 for self, spouse, and children
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₹50,000 for senior citizen parents
This not only provides tax relief but also financial protection for your family.
4. National Pension System (NPS)
An extra ₹50,000 deduction is available under Section 80CCD(1B) by contributing to the NPS—over and above the 80C limit.
5. Leave Travel Allowance (LTA)
LTA can be claimed for travel expenses incurred within India. To benefit, make sure to retain tickets and travel proofs, and remember it can only be claimed for two trips in a block of four years.
Need Expert Help?
Tax laws can be tricky, and what works for one person may not work for another. For personalized guidance and end-to-end tax planning support, consider consulting professionals. Explore Tax Planning Services to optimize your savings and ensure compliance.