10 Tax Saving Tips for Salaried Individuals in India (2026)
Every rupee saved in taxes is a rupee earned. Here are the most effective tax saving strategies that salaried employees in India should use in FY 2025-26.
1. Maximise Section 80C Deductions (Up to ₹1.5 Lakh)
Section 80C is the most widely used deduction. You can claim up to ₹1,50,000 through:
- EPF (Employee Provident Fund) — deducted from salary automatically
- PPF (Public Provident Fund) — safe, long-term investment
- ELSS Mutual Funds — shortest lock-in of 3 years with market returns
- Life Insurance Premium — term plans qualify
- NSC, Tax Saver FD, Sukanya Samriddhi Yojana
- Children's tuition fees (up to 2 children)
- Home loan principal repayment
2. Claim HRA Exemption
If you pay rent and receive HRA as part of your salary, claim HRA exemption under Section 10(13A). The exemption is the least of:
- Actual HRA received
- 50% of basic salary (metro) or 40% (non-metro)
- Rent paid minus 10% of basic salary
Tip: If you don't receive HRA, you can still claim up to ₹5,000/month under Section 80GG.
3. NPS Contribution — Additional ₹50,000 (Section 80CCD(1B))
Beyond the ₹1.5 lakh 80C limit, you can claim an additional ₹50,000 deduction by investing in the National Pension System (NPS). This is one of the most overlooked tax saving opportunities.
4. Health Insurance Premium (Section 80D)
Deduction available for medical insurance premiums:
- Self, spouse, children: Up to ₹25,000
- Parents (below 60): Additional ₹25,000
- Parents (60+): Additional ₹50,000
Preventive health check-up of ₹5,000 is included within this limit.
5. Home Loan Interest (Section 24b)
Claim up to ₹2 lakh deduction on interest paid on home loan for self-occupied property. For let-out property, there is no upper limit on interest deduction.
6. Education Loan Interest (Section 80E)
The entire interest paid on education loan (no cap) is deductible for up to 8 years from the year you start repaying. This applies to loans for self, spouse, or children.
7. Donate to Save Tax (Section 80G)
Donations to approved charitable institutions qualify for 50% or 100% deduction. Always get a proper receipt with the organisation's 80G registration number.
8. Leave Travel Allowance (LTA)
Claim tax exemption on domestic travel expenses for yourself and family, twice in a block of 4 years. Only the travel fare is exempt — accommodation and food expenses are not covered.
9. Standard Deduction of ₹75,000
From FY 2024-25, salaried individuals get a flat ₹75,000 standard deduction under the New Tax Regime. Under the Old Regime, it remains ₹50,000. This requires no documentation or proof.
10. Choose the Right Tax Regime
Compare your tax liability under both Old and New Tax Regimes every year. The New Regime offers lower slab rates but fewer deductions. The Old Regime is better if you have significant deductions (80C, HRA, home loan interest, etc.).
Our advice: Consult a tax consultant in Guwahati to calculate which regime saves you more. The right choice can save you lakhs.
Need Help with Tax Planning?
Deka & Associates is a trusted Tax & Business Consultancy firm in Guwahati specialising in tax planning and income tax return filing. We help salaried individuals, freelancers, and business owners minimise their tax liability legally.