TAX SAVING TIP PRIOR TO 2025 ITR FILING

Updated With The Most Recent Exemptions: Save Wisely, File Correctly

Many people begin searching for easy ways to lower their taxable income as the deadline for filing their Income Tax Returns (ITR) for FY 2024–2025 draws near. However, saving money on taxes requires careful planning and making use of government-approved deductions, not just last-minute scrambling.

Here are some recent updates and Tip on tax savings for 2025, with a special emphasis on Sections 80C, 80D, and NPS.

1.Section 80C: Your Primary Tax Shelter

Maximum Allowable Deduction: Rs.1.5 Lakhs

The majority of taxpayers' savings still rest on this section. You can spend or invest up to Rs.1.5 lakh on qualified instruments.

Popular choices under 80C include:

 • Public Provident Fund (PPF): long-term, safe, and tax-free interest;

 • ELSS Mutual Funds: good returns with only a three-year lock-in;

• Home Loan (principal repayment);

• Children's school fees (up to two children).
• 5-year Tax Saver FD

Tip: If you want to increase your wealth and save taxes at the same time, ELSS is fantastic.

2. National Pension Scheme (NPS) - Section 80CCD(1B) 

Additional Deduction: Rs.50,000 (Over and Above 80C)

This section offers you an additional Rs.50,000 in savings if you already have the Rs.1.5 lakh limit under 80C.

NPS offers the following benefits:

• lowering your taxable income
• increasing your retirement fund
• providing long-term tax advantages.

Tip: NPS is even more tempting because it is simpler to manage online and provides more flexible investment options.

3. Health Insurance Deduction - Section 80D

Max Deduction: Rs.1 lakh (based on age)

The cost of medical care is rapidly increasing. Invest in health insurance to safeguard both your family and your tax liability.

Limits of Deduction:
• Up to Rs.25,000 for the self, spouse, and children

• Parents (less than 60): Rs.25,000

• Parents (above 60): Rs.50,000

The sum that can be achieved is Rs.25,000 + Rs.50,000 = Rs.75,000.

You are eligible to receive up to Rs.1,00,000 if you and your parents are both elderly!

Tip: This section still applies to premiums paid for preventive health checks (within certain limits).

4. Standard Deduction (Salaried Employees)

All salaried people and pensioners are eligible for a flat deduction of Rs.50,000; no documentation or bills are needed.

5. HRA Exemption – For Salaried Employees Living on Rent

You may be eligible for an exemption if you receive House Rent Allowance (HRA) and live in a rented home as long as you have:

• Rent agreements or receipts
• The landlord's PAN (if the annual rent exceeds Rs.1 lakh)

Which Should I Choose in 2025: the Old or New Regime?

Old Regime (with deductions) and New Regime (lower slabs, no deductions) are your options

Tip: If you have invested, go with Old; if not, go with New, which has a more simple salary structure.

Before making a decision, always use an online tax comparison calculator or seek Tip from an expert.

Quick Summary of Deductions (FY 2024–25)

Final Words

Avoid waiting until the last minute.

Get your paperwork together, start early, invest wisely, and file your ITR without stress

Need Help Filing ITR or Planning Investments?

The right tax planning can increase your returns and reduce your stress.

At GIIS Financial, we help individuals

• Choose the best tax-saving investments
• Save tax through smart investments like ELSS & NPS
• File ITR with confidence

 Book a free consultation today and make your income tax-efficient in 2025!

Act Now Before the Best Opportunities Slip Away!

Visit Us: Pratap Tower, 2nd Floor, Bistupur, Jamshedpur, 831001
Call for a Free Consultation: 9153891015

To know more CHAT WITH US

You can also use GIIS Financial tools or Our Android App MF UNCLE  for Investment, tracking and Asset allocation planning. 

*Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.

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