Top 12 Tax-Saving Tips for Salaried Professionals in FY 2024-25

Tax season can be a daunting time for salaried professionals(Tax-Saving advise Salaried ), but with the right strategies, you can significantly reduce your tax liability. Here are the top 12 tax-saving tips to help you make the most of your hard-earned money.

1. Utilise Section 80C Deductions

Section 80C offers a wide range of investment options that can help you save up to INR 1.5 lakhs annually. Popular options include:

• Public Provident Fund (PPF)
• Employee Provident Fund (EPF)
• National Savings Certificates (NSC)
• Life Insurance Premiums

2. Take Advantage of Section 80D

Deduct premiums paid for health insurance for yourself, your spouse, children, and parents under Section 80D. This can provide a deduction of up to INR 25,000, and an additional INR 25,000 for insurance of parents, which increases to INR 50,000 if they are senior citizens.

3. Benefit from Home Loan Interest Deductions

Under Section 24(b), you can claim a deduction of up to INR 2 lakhs on the interest paid on home loans for a self-occupied property. For rented properties, there is no upper limit on the deduction of interest.

4. Invest in National Pension Scheme (NPS)

Investing in NPS can provide additional tax benefits under Section 80CCD(1B) with an extra deduction of up to INR 50,000 over and above the 80C limit.

5. Claim HRA Exemption

House Rent Allowance (HRA) can be partially or fully exempt from tax if you live in a rented house and pay rent. Make sure to keep rent receipts and lease agreements as proof.

6. Leverage Leave Travel Allowance (LTA)

LTA can be claimed for travel expenses incurred during a vacation within India. This exemption can be availed twice in a block of four years.

7. Tax Benefits on Education Loans

Under Section 80E, you can claim a deduction on the interest paid on education loans. This deduction is available for a maximum of 8 years or until the interest is fully paid, whichever is earlier.

8. Utilise Standard Deduction

A standard deduction of INR 50,000 is available to all salaried individuals, simplifying the process of claiming deductions and reducing taxable income.

9. Save with Meal Coupons and Allowances

Non-taxable meal coupons (up to INR 50 per meal) provided by employers can help reduce taxable salary. Other allowances such as telephone and internet reimbursement are also non-taxable when actual bills are submitted.

10. Claim Transport Allowance for the Disabled

For salaried individuals with disabilities, a transport allowance of INR 3,200 per month is non-taxable.

11. Reap Benefits from Section 80G Donations

Donations to certain charitable institutions and relief funds can be claimed as deductions under Section 80G. Ensure the donations are made to eligible entities and keep the receipts for claiming deductions.

12. Plan for Long-Term Investments

Invest in long-term financial instruments like Equity-Linked Savings Schemes (ELSS), which offer tax benefits under Section 80C and have the potential for higher returns.

Conclusion

Effective tax planning (Tax-Saving advise Salaried ) requires a proactive approach and a thorough understanding of available deductions and exemptions. By leveraging these top 12 tax-saving tips, salaried professionals can minimise their tax liabilities and maximise their savings. Always consult with a tax advisor to ensure compliance and to tailor these strategies to your specific financial situation.

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