Tax planning isn't just for the end of the financial year. Smart salaried employees plan their taxes throughout the year to maximize savings.
Section 80C Deductions
Invest up to ₹1.5 lakh in eligible instruments: EPF, PPF, ELSS, NSC, or life insurance premiums. Choose based on your risk appetite and lock-in preferences.
House Rent Allowance (HRA)
If you live in rented accommodation, HRA can significantly reduce your taxable income. Ensure you have proper rent receipts and your landlord's PAN details.
Standard Deduction
Salaried employees automatically get a standard deduction of ₹50,000. This is in addition to Section 80C benefits.
Health Insurance (Section 80D)
Premiums paid for health insurance for yourself and family are deductible up to ₹25,000. For parents, an additional ₹25,000-₹50,000 depending on their age.
NPS Contributions (Section 80CCD)
Investments in the National Pension System qualify for an additional ₹50,000 deduction beyond the 80C limit — this is over and above the ₹1.5 lakh limit.
Plan Throughout the Year
Don't rush to invest in March. Spread your investments across the year for better returns and less stress.