Under the old tax regime in India, here are some tax-saving ideas you can consider:
- Utilize deductions under Section 80C: Take advantage of deductions available under Section 80C of the Income Tax Act. You can invest up to Rs. 1.5 lakh in eligible instruments such as Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificates (NSC), tax-saving fixed deposits, and certain mutual funds (ELSS).
- Invest in National Pension System (NPS): Contributing to the NPS allows you to claim an additional deduction of up to Rs. 1.5 lakh under Section 80CCD(1B) over and above the Section 80C limit.
- Contribute to Employee Provident Fund (EPF): If you are a salaried employee, consider contributing to the EPF, which offers a tax deduction and tax-free interest on the accumulated amount.
- Utilize deductions for insurance premiums: Premiums paid for life insurance policies, health insurance policies, and medical insurance for parents can be claimed as deductions under Section 80C and Section 80D respectively.
- Deduction for home loan interest: If you have taken a home loan, you can claim deductions on the interest paid on the loan under Section 24(b) of the Income Tax Act. The maximum deduction allowed is Rs. 2 lakhs for a self-occupied property.
- Deduction for education loans: Interest paid on education loans can be claimed as a deduction under Section 80E. There is no upper limit for this deduction, and it can be claimed for a maximum of 8 years.
- Medical expenses for specific ailments: If you or a dependent family member suffers from specified diseases or disabilities, you can claim deductions for medical expenses incurred under Section 80DDB.
- Donations to eligible charitable institutions: Contributions made to eligible charitable institutions qualify for deductions under Section 80G.