- By Aditya Pratap Singh
- Fri, 07 Mar 2025 05:38 PM (IST)
- Source:JND
Income Tax: The financial year 2024-25 is about to end in just three weeks, and taxpayers who are still in the old tax regime have limited time to take advantage of their tax saving options. To avail the tax deductions for this financial year, eligible investments must be made by March 31, 2025. These benefits are exclusive to the old tax regime, as the new tax regime does not offer any similar deductions or exemptions.
One of the important benefits of the old tax regime is the House Rent Allowance (HRA) exemption under Section 10(13A), which significantly reduces the taxable income of salaried individuals. Unfortunately, this exemption is not available if you opt for the new tax regime.
Maximizing tax savings under Section 80C
A significant opportunity for tax savings under the old tax regime is Section 80C, which allows deductions of up to Rs. 1.5 lakh per financial year. Investors can spread their investments across various instruments, including:
- Equity-Linked Savings Scheme (ELSS)
- Sukanya Samriddhi Yojana (SSY)
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Senior Citizen Savings Scheme (SCSS)
- Life Insurance Premiums
- Kisan Vikas Patra (KVP)
- Post Office Term Deposits
Also Read: BSE Share Price Tumbles Nearly 9% After NSE Shifts All Expiry Dates To Monday
These investment options not only provide tax benefits but also encourage long-term financial planning. It is important to note that taxpayers opting for the new tax regime are not eligible to claim deductions under Section 80C.
Additional Tax Saving Opportunities
In addition to Section 80C, the old tax regime offers more deductions:
Health Insurance (Section 80D): Taxpayers can deduct up to Rs. Deductions of up to ₹25,000 can be claimed, which increases to ₹50,000 for senior citizens.
Support to disabled dependents (Section 80DD): This section provides additional tax relief to families supporting disabled dependents.
Charitable donations (Section 80G): Donations made to approved relief funds and charitable institutions are eligible for deductions while promoting social responsibility.
Tax calculator for optimized planning
To help taxpayers make informed choices, the Income Tax Department offers a tax calculator on its official website. This tool enables individuals to compare their tax liabilities under the old and new regimes, helping them choose the most financially beneficial option.
March 31, 2025 Deadline
The March 31, 2025 deadline is important for those following the old tax regime to finalize their tax-saving investments. Taxpayers should keep in mind the Rs. 1.5 lakh limit under Section 80C, as any investment beyond this limit will not offer additional tax benefits.
