How to Save Tax in India: A Practical Guide for Salaried Individuals

Tax season in India can be stressful, especially for salaried individuals who feel their options are limited. But with the right planning, you can reduce your tax burden significantly — all within legal and compliant methods.

Over the years, I’ve found that saving tax isn’t about complicated loopholes — it’s about knowing your options and using them smartly.

Here’s a breakdown of key strategies:

1️⃣ Maximise Section 80C Deductions

You can claim up to ₹1.5 lakh under Section 80C for investments and expenses such as:

• EPF (Employees’ Provident Fund)

• PPF (Public Provident Fund)

• Life insurance premiums

• ELSS (Equity-Linked Savings Schemes)

• Home loan principal repayment

• Children’s tuition fees

2️⃣ Use Section 80D for Health Insurance

• Premiums paid for medical insurance for self, spouse, and children qualify for deductions up to ₹25,000 (₹50,000 if parents are senior citizens).

• Preventive health check-ups up to ₹5,000 can also be claimed within this limit.

3️⃣ Claim HRA (House Rent Allowance)

If you live in rented accommodation and receive HRA, you can claim an exemption based on:

• Actual HRA received

• Rent paid minus 10% of basic salary

• 50% of salary (metro cities) or 40% (non-metros)

4️⃣ Don’t Miss Section 80E (Education Loan Interest)

If you’ve taken an education loan for yourself, your spouse, or your children, the entire interest amount is deductible for up to 8 years.

5️⃣ Save Under Section 80TTA / 80TTB

• Interest on savings bank accounts up to ₹10,000 (Section 80TTA)

• Senior citizens can claim up to ₹50,000 (Section 80TTB) on savings + fixed deposit interest.

6️⃣ Use the NPS (National Pension System) Extra Benefit

Under Section 80CCD(1B), you can claim an additional ₹50,000 deduction for contributions to NPS — over and above the ₹1.5 lakh 80C limit.

7️⃣ Claim LTA (Leave Travel Allowance)

You can claim LTA exemption for travel within India with your family — allowed twice in a block of four years. Keep travel bills as proof.

💡 Pro Tip: Start tax planning at the beginning of the financial year, not in March. This spreads your investments and avoids last-minute decisions.

Final ThoughtSaving tax isn’t just about paying less to the government — it’s about aligning your finances with your life goals. With smart use of deductions and exemptions, you can reduce your liability while building long-term wealth.