investment before March: As the calendar year 2025 has begun, there are only three months left for the financial year 2024-25 to end. If you want to maximize your tax savings, this is the time to make the right investments. By investing before 31 March 2025, you can claim tax exemption for the financial year 2024-25. The last date for ITR filing is 31 July 2025, so now is the time to plan properly.
Section 80C and 80CCC options
Under Section 80C, you can avail a maximum deduction of up to ₹1.5 lakh. For this, there are investment options like Public Provident Fund (PPF), National Savings Certificate (NSC) and Unit Linked Insurance Plan (ULIP). At the same time, under Section 80CCC, you also get tax exemption on contributing to a life insurance based pension plan. If you have not invested under these sections, then you can make this plan before the end of the year.
Exemption on health insurance and NPS
Under Section 80D, medical insurance premium is exempted. This exemption can be up to ₹25,000 for general citizens and ₹50,000 for senior citizens. Along with this, under Section 80CCD(1) and 80CCD(1B), one also gets the benefit of exemption on investing in the National Pension System (NPS). A maximum deduction of ₹1.5 lakh can be claimed under 80CCD(1) and an additional ₹50,000 under 80CCD(1B). This option is a good way to save tax along with saving for retirement.
Choose Old Tax Regime
If you want to avail more tax exemptions, choose the Old Tax Regime. Exemption options are limited in the new tax regime, but there are many options available in the old regime like Sections 80C, 80D, and 80CCD. Also, certain contributions like Agniveer Corpus Fund (Section 80CCH) are valid in the new tax regime as well.
Don’t waste time now. Choose the right investment option, maximize tax savings and file your ITR on time.