Tax Savings Tips / Last chance to save tax, you will not get any benefit after 31st March

Only 31 days are left for the financial year 2024-25 to end. Take advantage of deductions like 80C, 80D, 24B to save tax. The old tax regime has more deductions, while the new tax regime is simpler. Plan early and ensure financial security!

Tax Savings Tips: The financial year 2024-25 is about to end, with only 31 days remaining. If you haven't planned your tax savings yet, now is the time. After March 31, no matter what you do, you won’t be able to save tax on your salary.

Choosing an Income Tax Regime

The government currently offers taxpayers two options for tax regimes:

Old Tax Regime – This allows tax deductions on various investments and expenses, such as exemptions under Sections 80C, 80D, 80E, 80G, and 24B.
New Tax Regime – This has lower tax slabs but does not provide most deductions. However, it is simpler and less complex.

Key Ways to Save Tax

1. Deductions Under Section 80C

PPF (Public Provident Fund): A safe investment option that offers tax-free returns.
ELSS (Equity-Linked Savings Scheme): A mutual fund with high returns and tax exemption benefits.
Life Insurance: Tax benefits on life insurance premium payments.
Sukanya Samriddhi Yojana: Investment for a daughter's future with tax-saving benefits.

2. Health Insurance (Section 80D)

Tax exemption of up to ₹25,000 on health insurance premiums.
For senior citizens, this exemption increases to ₹50,000.

3. Home Loan Interest Deduction (Section 24B)

Tax deduction of up to ₹2 lakh on home loan interest.
Tax benefits on higher education loan interest under Section 80E.
Additional tax deduction of up to ₹50,000 under NPS (Section 80CCD(1B)).

4. Rent and Donations

If you live in a rented house and receive HRA (House Rent Allowance) from your employer, you can claim tax deductions.
Donations made under Section 80G qualify for 50% to 100% tax exemption.