The government announced a big relief in income tax in Union Budget 2025. Taxpayers are quite happy with this. However, these changes in tax rules will be applicable from the next financial year. You will have to pay the tax plan of FY 2024-25 according to the old rules. There are only a few days left for the end of this financial year. Therefore, you do not have much time left for tax-saving. If you do not take steps for tax-savings before 31 March, then you may have to pay a lot of tax. Moneycontrols are telling you about the methods that will help you a lot in tax-savings.
Election of the correct result of income tax
In every financial year with salary taxpayers, the old result of income tax (Income tax old regime) And there is an option to switch between the new regimen. Changes in tax reizards can also be made while filing income tax returns. Generally, the last date for filing income tax returns is 31 July. The old regimen provides facility to claim deduction by investing in about a dozen options including PPF, ELSS. However, tax rates are higher in this regimen. The new regimen does not have the facility to claim mostly deductions. However, tax rates are low. Therefore, if there are salary taxpayers, then consider it to choose one of the new and old regimen. If you are facing problems in this, then you can take help of tax consultant.
Claim of deduction in old regimen
If you are using the old regimen of income tax, then you can claim deduction on investment up to Rs 1.5 lakh under Section 80C of Income Tax Act, 1961. Apart from this, you can claim deduction by investing an additional Rs 50,000 in NPS. You can claim deduction of up to Rs 75,000 under section 80D of the Income Tax Act. A person can claim deduction of Rs 25,000 on the premium of the health policy for himself and the family. Apart from this, he can claim deduction of Rs 50,000 on the premium of the health policy for his elderly parents. You can claim deduction of Rs 2.25 lakh by including section 80C and 80D. If you include an additional Rs 50,000 of NPS in this, then this amount becomes Rs 2.75 lakh.
Tax Benefit on Home Loan/HRA
If you are using the old regimen of income tax, then you can also claim deduction on home loans. Under Section 24B of the Income Tax Act 1961, a maximum deduction can be claimed on home loan interest. Those who live in a rented house can claim tax benefit on HRA. This will reduce taxpayer tax significantly. HRA helps a lot in tax savings. This can be understood with the help of an example.
Also read: New Income Tax Bill: Decision of Rs 1.5 lakh found in section 80C will be available under section 123
Suppose your basic salary is Rs 50,000. You get Rs 20,000 HRA every month. You pay Rs 25,000 home rent in Delhi every month. You can claim exhalation on HRA of Rs 20,000 every month. Or you can claim HRA at 50 percent of the basic salary. In your case it will be Rs 25,000. Or you can claim exhalation on the amount that comes after decreasing 10 percent of the basic salary from the fare paid. In your case it will be Rs 20,000.