Tax Benefits You Can Use Right Now to Save More Money

If you’re working in India, chances are you’re paying income tax every year. The good news? The tax code has a lot of built‑in shortcuts that let you keep a bigger chunk of your paycheck. In this guide we’ll walk through the most common tax benefits, explain how they work, and give you quick steps to claim them.

Basic Deductions Every Salary Earner Should Know

Standard deduction – Since FY 2023‑24 you can automatically knock out ₹50,000 from your taxable income. No paperwork, just a line item on your I‑TR.

House rent allowance (HRA) – If you live in a rented house, HRA can be partially exempt. The exemption amount depends on your salary, HRA received, rent paid, and the city you live in. Keep rent receipts and your landlord’s PAN for proof.

Leave travel allowance (LTA) – You get tax‑free travel for yourself and your family twice in a block of four years. Book the tickets, keep the bills, and claim the amount shown in your payslip.

Employer‑provided meals and transport – Some companies give you a food coupon or a bus pass. These are often fully exempt, so check your salary slip for “meal allowance” or “conveyance allowance.”

Investments and Payments That Cut Your Tax Bill

Section 80C – You can claim up to ₹150,000 for investments like EPF, PPF, ELSS, life insurance premiums, and ULIP. The trick is to spread your money across a few options so you stay covered while saving tax.

Health insurance (Section 80D) – Premiums for yourself, spouse, children, and parents are deductible. For senior citizens you can claim up to ₹50,000, and for non‑senior parents up to ₹25,000.

Home loan interest (Section 24(b)) – Interest on a home loan for a self‑occupied property is deductible up to ₹200,000 per year. The principal repayment can also go under 80C.

Education loan interest (Section 80E) – If you’ve taken a loan for higher studies, the interest you pay is fully deductible for up to eight years.

Donations (Section 80G) – Contributions to approved charities can be claimed at 100% or 50% of the amount, with or without restriction, based on the organization.

Freelancers and gig workers have a few extra tricks. You can treat expenses like internet, phone bills, and coworking‑space rent as business costs, reducing your taxable profit. Just keep clear invoices and receipts.

Now that you know what’s out there, here’s a quick checklist to make sure you don’t miss anything:

• Gather rent receipts, landlord PAN, and rent agreement for HRA.
• Collect all investment proofs (EPF, PPF, ELSS, insurance).
• Keep health‑insurance premium statements for yourself and parents.
• Get the home‑loan certificate from your bank showing interest paid.
• Save donation receipts with the charity’s registration number.

When you file your return, use the “Tax Saving Investment” section to enter 80C details, then fill in the other sections for HRA, LTA, and deductions. Most online portals guide you step‑by‑step, so you don’t need to be a tax expert.

Bottom line: the tax code is built to reward saving and investing. By making a habit of tracking these benefits throughout the year, you’ll see a noticeable lift in your take‑home pay without any extra work. Start gathering your documents today, and watch your tax bill shrink next season.