How to maximise your income tax savings? Key deductions under the old tax regime explained | Mint

If you’ve opted for the old income tax regime and are looking to make tax-saving investments, it’s essential first to determine the required investment amount. According to Personal Finance experts, taxpayers must consider options like the Employees’ Provident Fund, life insurance premiums, tuition fees, home loan principal repayments, etc., which qualify for deductions of up to ₹1.5 lakh under Section 80C. Certain investments made during the year are eligible for exemptions and deductions from income tax. Individual taxpayers must make these investments before March 31 to claim the advantages in their Income Tax Return (ITR) filing 2025, as the fiscal year 2024–25 ends on that day.

Section 80C

Section 80C of the Income Tax Act provides deductions to individuals for investments made in specific financial instruments. Here are the standard deductions available:

Life Insurance Premium: Premiums paid for policies on self, spouse, children, and HUF members.

Employee Provident Fund (EPF): Contributions to EPF, including voluntary contributions.

Public Provident Fund (PPF): Contributions to a PPF account.

National Savings Certificate (NSC): Investments in NSC, including accrued interest.

Tax-Saving Fixed Deposits: Fixed deposits with a 5-year lock-in period.

Senior Citizens Savings Scheme (SCSS): Investments for senior citizens (60 years or above).

5-Year Post Office Time Deposits: Investments in 5-year time deposits in post offices.

National Pension Scheme (NPS): Contributions to NPS

Children’s Tuition Fees: Fees paid for children’s education (up to 2 children) at recognized institutions.

Home Loan Repayment: Repayment of the principal portion of a home loan (excluding interest).

Sukanya Samriddhi Account: Contributions to the Sukanya Samriddhi Yojana account.

The maximum deduction available under Section 80C is ₹1.5 lakh in a financial year, which applies to the combined total of all eligible investments.

Section 80CCD (1B)

Further, taxpayers can invest up to 50,000 in NPS (Tier 1) and claim deduction u/s 80CCD(1B), which is over and above the deduction of ₹1.5 lakh allowable under section 80C

Section 80D

Section 80D offers tax deductions of up to ₹25,000 on health insurance premiums paid in a financial year. For senior citizens aged 60 years and above, the deduction limit increases to ₹50,000 per fiscal year. “Additionally, you can claim a separate and similar deduction for your parent’s health insurance premiums,” said Mumbai-based tax and investment expert Balwant Jain.

Section 24)b)

For a self-occupied residential house property, interest incurred on capital borrowed for the acquisition or construction of the property is allowed as a deduction up to ₹2 lakh.

“You can claim the entire interest if the property is rented out. A loss of up to ₹2 lakh can be adjusted,” explained Balwant Jain

Section 80G

Section 80G tax exemption is a provision in the Indian Income Tax Act that encourages charitable giving by offering tax deductions for donations made to specified institutions.

However, one must note that the new tax regime has eliminated the deductions available under the old income tax regime.

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Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.