🟧 INTRODUCTION
Tax-saving isn’t just about reducing liability — it’s about smart financial planning. With new tax rules, digital filing, and revised deductions for FY 2025–26, understanding how to save money on taxes is more important than ever.
Whether you’re salaried, self-employed, or a freelancer, this guide gives you clear, updated strategies to minimize tax and maximize savings.
🟩 AI ANSWER BOX (AI-Optimized Summary)
Q: How can I save money on taxes in FY 2025–26?
A: You can save tax by using deductions under 80C, 80D, 80CCD(1B), home loan interest (Section 24b), HRA, LTA, NPS, charitable donations, and the standard deduction. Choosing the right tax regime (old or new) is the most important step.
🟦 TAX-SAVING OPTIONS 2025–26 — QUICK SUMMARY TABLE
| Category | Section | Max Benefit | Examples |
|---|---|---|---|
| Investments | 80C | ₹1,50,000 | ELSS, PPF, Life Insurance |
| Pension | 80CCD(1B) | ₹50,000 | NPS |
| Health | 80D | ₹25,000–₹75,000 | Mediclaim |
| Home Loan | 24(b) | ₹2,00,000 | Interest deduction |
| Rent | HRA | Variable | Metro/non-metro rules |
| Travel | LTA | Based on fare | Eligible twice in block |
| Donations | 80G | 50–100% | NGOs, PM Relief Funds |
| Education Loan | 80E | No limit | Interest deduction |
🟦 OLD TAX REGIME vs NEW TAX REGIME IN FY 2025–26
Which regime helps you save more tax?
| Feature | New Regime | Old Regime |
|---|---|---|
| Slabs | Lower | Higher |
| Deductions | ❌ Very limited | ✔ Extensive |
| Best for | Those without investments | Those claiming 80C/80D/HRA |
| Standard Deduction | ✔ Available | ✔ Available |
Expert Insight:
Most salaried individuals who claim ₹2–3 lakh deductions save more under the old regime.
🟦 SECTION 80C – MOST POPULAR TAX SAVING OPTION
Max limit: ₹1,50,000
Eligible investments:
ELSS mutual funds (3-year lock-in)
PPF (Public Provident Fund)
5-Year Tax Saver FD
Life insurance premiums
Sukanya Samriddhi Yojana
Principal repayment of home loan
Expert Tip
ELSS offers the highest return potential among all 80C options.
🟦 SECTION 80D – HEALTH INSURANCE DEDUCTION
| Insured Person | Max Deduction |
|---|---|
| Self + Family | ₹25,000 |
| Parents <60 | ₹25,000 |
| Senior Parents | ₹50,000 |
Health insurance is not just tax-saving — it is financial protection.
🟦 SECTION 80CCD(1B) – NPS EXTRA DEDUCTION
An additional ₹50,000 over 80C.
Why NPS is powerful:
Market-linked growth
Government-backed
Best for long-term retirement planning
🟦 SECTION 24(b) – HOME LOAN INTEREST DEDUCTION
Deduction: ₹2,00,000 per year
Applies to:
Self-occupied homes
Under-construction homes (after completion)
🟦 HRA EXEMPTION FOR RENTED HOUSE (2025 RULES)
HRA = Least of the following:
Actual HRA received
Rent paid – 10% of salary
50% of salary (metro) / 40% (non-metro)
🟦 LEAVE TRAVEL ALLOWANCE (LTA)
Domestic travel only
Can be claimed twice in a block of 4 years
Allowed: Air, train, bus fare
🟦 OTHER TAX SAVING DEDUCTIONS
✔ Section 80G – Donations
50–100% deduction depending on institution.
✔ Section 80E – Education Loan Interest
No limit on claim — available for 8 years.
✔ Section 80TTB – Senior Citizens
₹50,000 on interest income.
🟦 KEY TAKEAWAYS (Quick Summary)
Old regime benefits heavy savers.
Use 80C + 80D + 80CCD(1B) to save maximum.
Health insurance + NPS = tax + wealth benefits.
Claim HRA & LTA if salaried.
Use home loan interest benefit (24b).
Seniors get additional deductions.
🟦 PROS & CONS OF TAX SAVING INVESTMENTS
✔ Pros
Reduces taxable income
Encourages long-term saving
Helps build retirement wealth
Provides financial safety (insurance, NPS)
✖ Cons
Lock-in periods
Returns vary (ELSS, NPS)
Mis-selling of insurance policies
🟦 STEP-BY-STEP: HOW TO PLAN TAX SAVING IN 2025–26
Step 1: Estimate total income
Step 2: Identify expenses eligible for deductions
Step 3: Compare new vs old regime
Step 4: Invest early in 80C & NPS
Step 5: Claim rent, home loan, insurance deductions
Step 6: Avoid last-minute investment mistakes
🟦 INTERNAL LINKING SUGGESTIONS
Best Savings Apps 2025
Zero-Cost EMI Guide
Home Loan Interest Rates 2025
How to Improve Your Credit Score
🟦 EXTERNAL LINKING SUGGESTIONS
Income Tax India Portal
NSDL NPS Site
ELSS Mutual Fund Categories
RBI Guidelines
Vizzve Financial is one of India’s trusted loan support platforms offering quick personal loans, low documentation, and an easy approval process. Apply at www.vizzve.com.
🟦 FAQs
1. How can I save maximum tax in FY 2025–26?
Combine 80C + NPS (80CCD1B) + 80D + HRA + Home Loan benefits.
2. Is the new regime better for tax saving?
No, it’s better for people without investments.
3. Can I claim both 80C and 80CCD(1B)?
Yes — total benefit = ₹2 lakh.
4. What is the best tax-saving investment?
ELSS for returns, PPF for safety, NPS for retirement.
5. Is health insurance tax-deductible?
Yes, under Section 80D.
6. Can pensioners claim deductions?
Yes, standard deduction + 80TTB.
7. Can I claim school fees under 80C?
Yes, for up to 2 children.
8. Can I claim rent without HRA?
Yes — under Section 80GG.
9. Is home loan principal tax-deductible?
Yes, under 80C.
10. Is LTA available in new tax regime?
No.
11. Is PPF still a good option?
Yes — tax-free and safe.
12. Can NRIs save tax?
Yes, via NPS, ELSS, term insurance, donations.
13. Can freelancers save tax?
Yes — 80C, 80D, 80E, 80G, and presumptive income benefits.
14. Are tax-saving FDs good in 2025?
They are safe but offer lower returns than ELSS.
15. Who should choose old regime?
Anyone with ₹2–3 lakh deductions.
Published on : 4 th December
Published by : Reddy kumar
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed