1. Invest in ELSS Funds
Consider investing ₹64,200 in ELSS Mutual Funds under section 80C for the shortest lock-in period (3 years) and potentially high returns (12% - 14% annually).
INVEST Amount ₹ 64,200 TAX ₹ 19,260
2. Invest in PPF
To mitigate risk and secure assured returns, we advise investing ₹64,200 in PPF (Public Provident Fund) under section 80C, with the maturity amount being entirely non-taxable.
INVEST Amount ₹ 64,200 SAVE TAX ₹ 19,260
3. Invest in NPS
By investing ₹50,000 in NPS (National Pension Scheme) under 80CCD(1B), you not only save taxes but also establish a robust retirement fund, yielding annual returns of 9% - 12%.
INVEST Amount ₹ 50,000 SAVE TAX ₹ 15,000
4. Buy a Health Insurance
We recommend purchasing a health insurance policy worth ₹25,000 per year to safeguard yourself against any potential medical emergencies.
INVEST Amount ₹ 25,000 SAVE TAX ₹ 75,000
Savings through Exemptions >>>>> TOTAL SAVINGS ₹ 56,610
1. Claim the House Rent Allowance
Salaried individuals residing in rented accommodations can avail of the House Rent Allowance (HRA) to cover rental expenses. Claiming the full HRA exemption can result in tax savings of ₹34,200.
CLAIM ₹ 1,14,000 SAVE TAX ₹ 34,200
2. Go on vacations - LTA
If you've taken leave and traveled or are planning to travel, you can save taxes by claiming the LTA (Leave Travel Allowance) exemption. This exemption can be applied to travel costs and can also be claimed when traveling with your family.
CLAIM ₹ 74,700 SAVE TAX ₹ 22,410
Savings through Loans >>> TOTAL SAVINGS ₹ 1,03,630
1. Interest paid towards Home Loan
Indeed, purchasing a house can lead to tax savings. If you've bought a house, you can save taxes by claiming the interest paid on the home loan as a deduction under section 24B, with a maximum limit of ₹2 lakh.
CLAIM ₹ 200,000 SAVE TAX ₹ 600,000
2. Interest paid on purchasing electric vehicle
If you've bought an electric vehicle, you can save taxes by claiming the interest paid on the loan amount under the 80EEB Deduction, with a maximum limit of ₹1.5 lakh.
CLAIM ₹ 1,50,000 SAVE TAX ₹ 43,630
Additional Recommendations >>> SAVINGS BEYOND ₹ 2,21,260
1. Allowances/Reimbursement from employer
Employers often provide various allowances to salaried individuals, which can contribute to tax savings. Allowances for food, mobile & broadband, and gift coupons are among them, and they can collectively help you save up to ₹20,000 in taxes!
Major allowances from employers
Books & Periodicals
₹ 48,000
Food Coupons
₹ 26,400
Fuel & Driver
₹ 32,400
Mobile & Broadband
₹ 36,000
Gift Coupons
₹ 5,000
CLAIM ₹ 1,47,000 SAVE TAX ₹ 44,000
Social Donations
2. Contributing to social causes and nation-building efforts can indeed lead to tax savings under section 80G. We recommend contributing ₹5,000 per year to any relief funds or charitable institutions of your choice to support society and also avail tax benefits.
CLAIM ₹ 5,000 SAVE TAX ₹ 1,500
