There are only a few days left for the financial year 2024-25 to end. Taxpayers have the last chance to invest and save tax until March 31, 2025. If you are under the Old Tax Regime, you can reduce your tax by investing in schemes like NPS, PPF, and ELSS. After this, the Income Tax Return (ITR) filing season will begin on 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 – 5 years lock-in period
- ELSS Mutual Fund – 3 years lock-in period
- Life insurance premium
- Sukanya Samriddhi Yojana (savings scheme for daughters)
- Children’s tuition fees
- Deduction on home loan principal
Section 80D (Deduction on Health Insurance)
- Deduction up to Rs 25,000 for self, family, and children
- Deduction up to Rs 50,000 for parents (senior citizens)
- Additional deduction of Rs 5,000 for health checkup
Section 80E (Deduction on Education Loan)
- Full exemption on interest on loans taken for higher education
- Exemptions available for up to 8 years
Section 80EE and 80EEA (Additional Benefits on Home Loans)
- Exemption up to Rs 50,000 for first-time home buyers
- Additional exemption up to Rs 1.5 lakh for affordable homes
Section 80G (Exemption on Donations)
- 50% to 100% deduction on donations
Section 80GG (Exemption on Rent)
- If HRA is not included in salary, then exemption up to Rs 60,000 per annum
Section 24(b) (Exemption on Home Loan Interest)
- Exemption up to Rs 2 lakh per annum for self-occupied house
- No upper limit on rented houses
Exemption on NPS (National Pension Scheme)
- 80CCD(1): Up to 10% of salary (20% for self-employed)
- 80CCD(1B): Additional contribution up to Rs 50,000 in NPS exemption
- 80CCD(2): Exemption on contribution made by employer
Section 80TTB (Exemption for Senior Citizens)
- Exemption up to Rs 50,000 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 receive Form 16, which will have complete details of their salary and TDS. This verifies that your tax has been deducted. If you want to save tax, be sure to invest before March 31 to avoid any hassle while filing your ITR later.