There are multiple deductions and exemptions available in income tax act, 1961 which individuals can take advantage of to save taxes on income earned during FY 2024-25. However the amount of tax that individuals can save would depends upon 2 factors - the tax regime chosen and the expenses or the investment made by an individual for claiming the said deduction. It is imp to noted that no change has been made in income tax slabs for FY 2024-25( April 1, 2024- March 31,2025) in the interim budget 2025.

Salaried individuals often seek ways to minimize their tax liability while maximizing their take-home pay. Here are 11 strategies for tax savings for the financial year 2024-25 :-

1. Deduction under section 80c

• Invest in Provident Fund (PF): Contributing to Employee Provident Fund (EPF) helps in saving tax under Section 80C of the Income Tax Act. The contributions made towards EPF are eligible for a deduction of up to ?1.5 lakh per annum.
• Investment in Public Provident Fund (PPF): Investing in PPF offers tax benefits under Section 80C, with contributions of up to ?1.5 lakh annually eligible for deduction. PPF also offers tax-free interest and maturity proceeds.
• Equity Linked Savings Scheme (ELSS): ELSS investments provide dual benefits of potential high returns from equity markets and tax savings under Section 80C, with a lock-in period of three years.
• Tuition fees of child education: The deduction is available for tuition fees paid to any school, college, university, or educational institution situated in India. The maximum deduction allowed under Section 80C for tuition fees is up to Rs. 1.5 lakh per financial year.

2. National Pension System (NPS): NPS contributions qualify for deduction under Section 80CCD(1B), allowing an additional deduction of up to ?50,000         beyond the ?1.5 lakh limit of Section 80C.

3. Health Insurance Premium: Premiums paid towards health insurance for self, spouse, children, and parents are eligible for deduction under Section 80D, providing tax relief up to

?25,000 (?50,000 for senior citizens).

4. Home Loan Interest: Interest paid on home loans is eligible for deduction under Section 24(b), with a maximum limit of ?2 lakh per annum for self-occupied properties.

5. Education Loan Interest: Interest paid on education loans is eligible for deduction under Section 80E, with no upper limit, for a maximum of 8 years.

6. Donations: Donations made to eligible charitable organizations qualify for deduction under Section 80G, ranging from 50% to 100% of the donated amount.

7. House Rent Allowance (HRA): Salaried individuals receiving HRA can claim deduction under Section 10(13A) for the rent paid, subject to certain conditions.

8. Leave Travel Allowance (LTA): LTA can be claimed for expenses incurred on domestic travel for self and family members, subject to certain conditions under Section 10(5).

9. Interest on Savings Account: Interest earned on savings accounts is eligible for deduction up to ?10,000 under Section 80TTA.

By utilizing these tax-saving avenues effectively, salaried individuals can optimize their tax planning and increase their disposable income. However, it's advisable to consult with a tax advisor to tailor these strategies according to individual financial goals and circumstances.