Plan ahead
Legal ways to reduce your tax
Almost all of these apply only if you choose the Old Regime. Run your numbers in the calculator first — if the New Regime already costs you less, extra investments made purely for tax reasons may not help.
Section 80C
₹1,50,000
EPF and PPF contributions, ELSS mutual funds, life insurance premiums, five-year tax-saving deposits, Sukanya Samriddhi, NSC, and home loan principal repayment — all share one combined ceiling.
Section 80CCD(1B) — NPS
₹50,000
An additional deduction for your own contribution to the National Pension System, over and above the 80C ceiling.
Section 80D — health insurance
₹25,000 (self) + ₹50,000 (senior parents)
Premiums for yourself, your spouse and children, plus a separate limit for your parents. Preventive health check-ups count within these amounts.
Home loan interest
₹2,00,000
Interest on a loan for a self-occupied house is deductible in the Old Regime. For a let-out property, actual interest is allowed against rental income, with loss set-off capped at ₹2,00,000.
HRA exemption
Formula based
The lowest of: actual HRA received, rent paid minus 10% of basic, or 50% of basic (40% outside metros). Available only in the Old Regime and only if you actually pay rent.
Section 80E and 80G
No upper limit (80E)
Education loan interest is fully deductible for up to eight years. Donations to eligible funds and institutions qualify under 80G, at 50% or 100% depending on the recipient.
Section 80TTA / 80TTB
₹10,000 / ₹50,000
Savings account interest up to ₹10,000 for most people; senior citizens instead get up to ₹50,000 covering savings and fixed deposit interest.
General information only, not personalised tax advice. Limits and eligibility change with each Union Budget — confirm current rules before investing.