Last-Minute Tax Planning Tips to Maximize Savings Before FY 2024-25 Ends

As we approach the end of financial year 2024-25, here are few last-minute tax saving tips for salaried individual.

Deduction under section 80C, Section 80CCC and Section 80CCD

An Individual can claim deductions from income up to Rs.1.5 lakh if they invest their money in instruments mentioned under section 80C, 80CCC, and 80CCD.

• Public provident fund (PPF)
• Equity-Linked Saving Scheme (ELSS)
• Tax saving fixed deposits
• National Pension System (NPS)
• Employee’s Provident fund (EPF)
• Life Insurance Premium

Deduction under section 80D

An individual can claim deductions up to Rs. 25,000 against the medical insurance paid to cover their spouse and dependent children and additional Rs.25,000 for parents (In case of parents who are senior citizen deduction allowed is up to Rs. 50,000)

House Rent Allowance

A salaried individual is allowed House Rent allowance, which is deducted from their income. An individual can claim the lowest of the following as deduction-

• Actual HRA amount received from the employer
• 50% of the Basic Salary (If living in metro cities Delhi, Mumbai, Kolkata, Chennai)
• 40% of the Basic Salary (if living in other cities)
• Rent paid minus 10% of the basis salary

Home Loan

Under section 24 of Income tax act, an individual can claim deduction up to Rs. 2 lakhs on interest payable on house loan. There is no maximum limit in case house is given out on Rent.

Education Loan

Under section 80E of the Income Tax Act, an individual can claim deduction on the interest paid on education loan taken for higher education for themselves or their children or spouse. There is no maximum limit for the deduction.

Donations

Under section 80G of Income Tax Act, an Individual can claim deduction if donation is made towards any charitable organizations. Tax deduction can be either 50% or 100% of the donation made depending upon nature of donation and the type of the charitable organisation. To claim this deduction, you must have avail

• a receipt from the organisation to which donation is made and it must include name, pan, address and amount donated
• 80G certificate issued by the organisation.

THANK YOU

Prepared by: Team “Taxcellent”

For more tax planning and savings tips please feel free to reach out to us at +91 8882323267. We look forward to assisting you!

Taxcellent Team is here to assist you with a wide range of online CA services in Delhi, including ITR filing, GST filing, Accounting Services, Net Worth Certificate, TDS Return filing, Investment Advisory, Tax Advisory, Tax planning & savings, company incorporation, GST registration, MSME Registration, Tax Assessments, GST Assessments.