With just five weeks remaining in the fiscal year, taxpayers need to act quickly to invest in tax-saving instruments. The deadline to make these investments is March 31, 2025. By investing in eligible instruments, taxpayers can claim deductions and reduce their taxable income.
Under the old tax regime, several options are available for tax-saving investments. These include Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), life insurance premiums, and tax-saving fixed deposits. Section 80C allows deductions of up to ₹1.5 lakh for these investments.
Additionally, taxpayers can claim deductions under Section 80D for health insurance premiums, up to ₹25,000 for individuals and ₹50,000 for senior citizens. Contributions to certain relief funds and charitable institutions are eligible for deductions under Section 80G.
It’s important to note that these deductions are only available under the old tax regime. The new tax regime does not allow for these exemptions. Taxpayers should evaluate their financial goals and choose the appropriate tax regime to maximize their savings.
