Tax planning is essential to reduce your liability and maximize savings. The old tax regime offers multiple deductions, but many taxpayers miss out on key sections. Here are four must-know tax-saving sections to save lakhs legally!
Did You Know, If you buy a house under affordable housing schemes, you may claim extra deductions under Section 80EEA!
1. Section 80C – Claim Up to ₹1.5 Lakh Easily
This is the most commonly used tax-saving section. You can claim deductions by investing in various financial instruments.
Eligible Investments Under 80C
| Investment Option | Maximum Deduction (₹) |
|---|---|
| PPF | 1,50,000 |
| EPF | 1,50,000 |
| 5-Year FD | 1,50,000 |
| Life Insurance | Premium Paid |
| ELSS Funds | 1,50,000 |
These investments reduce taxable income while helping in wealth creation.
2. Section 80CCD(1B) – Extra ₹50,000 Deduction!
Many taxpayers forget this additional benefit under the National Pension System (NPS). You can claim up to ₹50,000 over and above 80C.
Benefits of NPS Tax Deductions
| NPS Contribution | Maximum Deduction (₹) |
|---|---|
| Self-Contribution (80C) | 1,50,000 |
| Additional Contribution (80CCD(1B)) | 50,000 |
| Total Tax Benefit | 2,00,000 |
NPS ensures long-term savings and a steady retirement income.
3. Section 80D – Save Up to ₹1 Lakh on Medical Insurance
Medical expenses are rising. Section 80D helps in reducing tax while securing health coverage.
Who Can Claim & How Much?
| Insured Person | Maximum Deduction (₹) |
|---|---|
| Self, Spouse, Children | 25,000 |
| Parents (Below 60) | 25,000 |
| Parents (Above 60) | 50,000 |
| Total (With Senior Citizen Parents) | 1,00,000 |
This deduction applies to health insurance premiums and preventive health check-ups.
4. Section 24(b) – Home Loan Interest Deduction
If you have a home loan, you can claim up to ₹2 lakh per year as a deduction on interest payments.
How Much Can You Save?
| Loan Type | Maximum Deduction (₹) |
|---|---|
| Self-Occupied | 2,00,000 |
| Rented Property | No Upper Limit |
This helps homeowners reduce tax liability significantly
Also Read: Complete List of Exemptions for Salaried Employees in India (2025)
Final Thoughts
Using these sections wisely can reduce tax liability by lakhs. Smart investments and planning help in long-term financial security. Don’t miss out on these hidden gems in the old tax regime!
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, financial, or other professional advice. While every effort is made to ensure the accuracy and reliability of the information, laws and regulations may change, and individual circumstances vary.
Readers are encouraged to consult with qualified professionals or official government resources for personalized guidance regarding their specific situations. The author and publisher disclaim any liability for decisions made or actions taken based on the information provided herein.
