Want to pay less tax without breaking the law?
This guide covers 100% legal tax-saving options that salaried individuals, freelancers, and business owners in India can use in FY 2024–25.
📉 Top 10 Legal Ways to Save Tax in India
1️⃣ Use Section 80C – Save up to ₹1.5 Lakh
Eligible investments:
- Public Provident Fund (PPF)
- Life Insurance Premiums
- ELSS Mutual Funds
- Sukanya Samriddhi Yojana
- 5-Year Tax Saving FD
📌 Tip: Combine multiple options for full benefit.
2️⃣ Claim HRA (House Rent Allowance)
If you live in a rented house, claim HRA.
Keep rent receipts and landlord PAN (if rent > ₹1 lakh/year).
3️⃣ NPS – Extra ₹50,000 Deduction (Section 80CCD(1B))
Investing in NPS?
You can claim additional ₹50,000 deduction beyond 80C.
4️⃣ Health Insurance (Section 80D)
- Self + Family: Up to ₹25,000
- Parents (Senior Citizen): Up to ₹50,000
Total possible: ₹75,000 deduction
5️⃣ Home Loan Benefits (Section 24 & 80EEA)
- Interest on home loan: Deduct up to ₹2 lakh
- First-time home buyers: Extra deduction possible
6️⃣ Education Loan Interest (Section 80E)
Deduction on interest paid for higher education loan (for you or your children).
No upper limit.
7️⃣ Standard Deduction for Salaried (₹50,000)
Available to all salaried employees – no proofs required.
Auto-applied by employer.
8️⃣ Work From Home Deductions (Freelancers & Remote Workers)
Claim electricity bills, Wi-Fi, laptop depreciation if used for work.
Maintain bills as evidence.
9️⃣ Use New vs Old Regime Smartly
Compare tax in both regimes using online calculators.
Choose the one that saves more.
🔟 Invest in Tax-Free Instruments
- EPF Interest
- PPF Maturity
- Tax-Free Bonds
- Dividend Income (below limit)
📊 Quick Deduction Summary Table
| Section | Purpose | Max Deduction |
|---|---|---|
| 80C | Investments like PPF, ELSS | ₹1.5 Lakh |
| 80CCD(1B) | NPS Additional | ₹50,000 |
| 80D | Health Insurance | ₹75,000 |
| 24(b) | Home Loan Interest | ₹2 Lakh |
| 80E | Education Loan Interest | No Limit |
🔗 Internal Links
- Old vs New Tax Regime – Which is Better in 2025?
- Top 5 ELSS Funds with High Returns (2025)
- How to Claim HRA Without Rent Agreement
✅ Conclusion
Tax planning is not just about saving money – it’s about being smart and compliant.
Start early in the year, invest wisely, and keep documents ready for a stress-free financial year.
📌 Learn more practical money skills at: ComputerAcademy.in
