Learn the top tax-saving deductions for salaried individuals while filing ITR for FY 2024–25. Maximize your income tax savings with smart planning.
Filing your Income Tax Return (ITR) can be more than just a compliance task—it’s also an opportunity to save money legally. If you’re a salaried individual, you may be eligible for several deductions and exemptions under the Income Tax Act, 1961, for the financial year 2024–25 (assessment year 2025–26). Here’s a smart guide to help you maximize tax savings when filing your ITR.
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🔹 1. Standard Deduction (₹50,000)
All salaried employees and pensioners are eligible for a flat deduction of ₹50,000. No bills required—just claim it directly in your ITR.
🔹 2. Section 80C Deductions (Up to ₹1.5 Lakh)
This is the most popular section for salaried individuals. You can claim up to ₹1.5 lakh through:
- Employee Provident Fund (EPF)
- Public Provident Fund (PPF)
- Life Insurance Premiums
- ELSS (Equity Linked Saving Scheme)
- Principal repayment of home loan
- Children’s tuition fees
Read More: Simplify Your Tax Life: Ultimate ITR Filing Guide for Salaried Individuals (FY 2024-25)
🔹 3. Section 80D – Health Insurance
You can claim deductions on premiums paid for health insurance:
- ₹25,000 for self, spouse & children
- Additional ₹25,000–₹50,000 for parents (depending on their age)
🔹 4. House Rent Allowance (HRA)
If you live in a rented house and get HRA, you can claim an exemption under Section 10(13A). If you live in rented accommodation, you can claim HRA exemption. Keep rent receipts and PAN of landlord (if rent > ₹1 lakh/year).
Even if you don’t receive HRA but pay rent, you may still claim benefits under Section 80GG.
🔹 5. Section 24(b) – Home Loan Interest
Benefits on Home Loan
- ₹2,00,000 deduction on interest under Section 24(b)
- ₹1.5 lakh on principal repayment under 80C
- First-time homebuyers may claim additional deduction under Section 80EE / 80EEA
Pro Tip: Combine it with spouse’s name if both are earning – both can claim deductions individually.
🔹 6. Section 80E – Education Loan Interest
Interest paid on loans for higher education (self, spouse, or children) is fully deductible for up to 8 years.
🔹 7. Section 80CCD(1B) – NPS Contributions
An additional ₹50,000 deduction is available for contributions to the National Pension System. This is over and above the ₹1.5 lakh under Section 80C
🔹 8. Leave Travel Allowance (LTA)
LTA can be claimed twice in a block of four years for domestic travel. Save bills and proof of travel to claim this exemption.
Reimbursements & Allowances (Exempt from Tax)
If structured correctly, the following components are tax-free:
- Mobile/Internet reimbursement
- Meal coupons (e.g., Sodexo)
- Fuel and driver reimbursement
Pro Tip: Submit bills to employer in time to claim these tax-free.
🔹 9. Section 80TTA/80TTB – Savings/FD Interest
- ₹10,000 deduction on savings account interest (80TTA)
- ₹50,000 for senior citizens (80TTB) on interest from savings, FDs, etc.
🔹 10. New vs Old Tax Regime – Choose Wisely
Under the new tax regime, most deductions are not available—but tax rates are lower. Calculate both options before filing. Use a tax calculator to compare and choose what saves you the most.
Addition to above this the following section is also save your tax
A. Donations under Section 80G:
Donations to approved charities and PM relief funds are eligible for 50%-100% deduction.
Pro Tip: Ensure the organization has a valid 80G certificate and keep digital receipts
B. Invest in Tax-Saving Fixed Deposits or ULIPs:
Bank tax-saving FDs (5-year lock-in) and ULIPs qualify under Section 80C.
Pro Tip: Choose ULIPs if you’re looking for a combined insurance-investment plan, but compare costs carefully.
📝 Final Thoughts
With proper planning, you can reduce your tax liability substantially. Always maintain documentation and consult a tax advisor if you’re unsure about eligibility.
📌 Quick Checklist for Salaried Individuals
✅ Standard Deduction
✅ 80C Investments
✅ HRA Calculation
✅ 80D Health Insurance
✅ Home Loan & NPS
✅ Compare Old vs New Regime
🔗ITR Filing: Master Your Finances: Ultimate Guide to Effortless ITR Filing in India for FY 2024-25
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