If you’re a salaried employee, you might be paying more tax than you need to. The good news? With smart planning, you can legally reduce your tax burden and save thousands every year.
Here are 10 proven tax-saving tips every salaried person should know — especially before the financial year ends:
1️⃣ Maximize Section 80C Deductions
You can claim up to ₹1.5 lakh under Section 80C. Eligible investments and expenses include:
- PPF (Public Provident Fund)
- ELSS (Tax-saving mutual funds)
- Life insurance premiums
- EPF contributions
- Principal on home loan
- Tuition fees for children
2️⃣ Use the NPS (Section 80CCD(1B))
In addition to 80C, you can save an extra ₹50,000 by investing in the National Pension System (NPS). That’s a total deduction of ₹2 lakhs!
3️⃣ Claim HRA (House Rent Allowance)
If you live in a rented house and get HRA as part of your salary, you can claim HRA exemption — even if you’re staying with parents (just pay rent and get a receipt).
4️⃣ Reimbursements Are Tax-Free (If Used Wisely)
Utilize the full tax benefit of:
- LTA (Leave Travel Allowance)
- Meal coupons
- Fuel or travel allowance
- Mobile/internet reimbursement
These can significantly reduce your taxable salary.
5️⃣ Claim Interest on Home Loan (Section 24B)
You can claim up to ₹2 lakh per year on home loan interest for a self-occupied property under Section 24B.
6️⃣ Use Health Insurance to Save (Section 80D)
Premiums paid for medical insurance are tax deductible:
- Self, spouse, children: Up to ₹25,000
- Parents (senior citizens): Additional ₹50,000
That’s up to ₹75,000 saved per year.
7️⃣ Education Loan Interest (Section 80E)
If you’re repaying an education loan for yourself or a family member, you can claim 100% deduction on interest paid — no upper limit, for up to 8 years.
8️⃣ Invest in Tax-Free Bonds
Interest from government-issued tax-free bonds (like NHAI, REC) is exempt from tax. A smart option for safe, passive income.
9️⃣ Standard Deduction for Salaried
As a salaried individual, you automatically get a ₹50,000 standard deduction — no action required, but worth knowing!
🔟 Switch to the Old or New Regime Wisely
- The new tax regime offers lower slabs but no deductions
- The old regime offers deductions and exemptions
👉 If you claim a lot of deductions, the old regime may still save you more. Use a tax calculator before filing.
🧠 Final Thoughts
Tax planning isn’t just for the wealthy — it’s for everyone who earns a salary. These legal tips can help you keep more of what you earn, grow your wealth, and plan ahead.
💬 Need help choosing the right regime or investments? I can help you figure out a personalized tax-saving plan — just ask!
