Save taxces legally Deductions under 80C ,80D, HRA etc Assessment year 2025

To legally save taxes for the Assessment Year (AY) 2025–26 (Financial Year 2024–25), you can make use of various deductions and exemptions provided under the Income Tax Act, 1961. Below are some key ways to save tax legally:

???? 1. Choose the Right Tax Regime
Old Regime: Allows deductions like 80C, 80D, HRA, etc.

New Regime (u/s 115BAC): Lower tax rates, but no deductions/exemptions (except NPS employer contribution, standard deduction, etc.).

✅ If you plan to claim deductions, stick to the Old Regime.

???? 2. Deductions under Section 80C (Limit: ₹1.5 lakh)
You can claim up to ₹1.5 lakh under 80C by investing/spending in:

Investment/Expense Eligible for 80C?
Employee Provident Fund (EPF) ✅
Public Provident Fund (PPF) ✅
Life Insurance Premium (self/family) ✅
Equity Linked Saving Scheme (ELSS) ✅
5-Year Fixed Deposit (with banks) ✅
National Savings Certificate (NSC) ✅
Tuition Fees for children (max 2) ✅
Home Loan Principal Repayment ✅
Sukanya Samriddhi Yojana (for girl child) ✅

???? 3. Section 80D – Health Insurance Premiums
Self + Family: Up to ₹25,000

Parents (if senior citizen): Up to ₹50,000

Total Possible Deduction: ₹75,000

Includes preventive health check-ups (max ₹5,000, within the above limits).

???? 4. HRA (House Rent Allowance) Exemption
Available if you live in rented accommodation. Exemption is least of:

Actual HRA received

50% of salary (metro) / 40% (non-metro)

Rent paid – 10% of salary

✔️ Provide rent receipts and landlord’s PAN if annual rent > ₹1 lakh.

???? 5. Section 24(b) – Interest on Home Loan
Deduction up to ₹2 lakh for self-occupied house on interest paid.

No limit for let-out property (subject to set-off limit of ₹2 lakh for losses).

???? 6. National Pension Scheme (NPS)
80CCD(1): Part of 80C (within ₹1.5 lakh limit)

80CCD(1B): Extra ₹50,000 over 80C limit

80CCD(2): Employer’s contribution (up to 10% of salary), additional

???? 7. Section 80E – Education Loan Interest
No cap on amount

For higher education of self/spouse/children

Deduction up to 8 years

???? 8. Section 80G – Donations
Donations to approved funds/NGOs – up to 100% or 50%, with/without limit

???? 9. Other Useful Deductions
Section Deduction For Limit
80TTA Interest on Savings A/c (non-senior) ₹10,000
80TTB Interest on deposits (senior citizens) ₹50,000
80U For individuals with disability ₹75,000 – ₹1.25 lakh
80DD/80DDB Medical treatment for dependents Varies

✅ Pro Tips to Save More
Plan investments early in the year.

Combine 80C + 80CCD(1B) to get ₹2 lakh deduction.

Opt for ELSS if you want short lock-in + market returns.

Use employer benefits (like NPS or food coupons) smartly.

Claim HRA even if receiving home loan interest (for different properties).