Tax planning: Key deductions and exemptions you should know

Tax planning helps reduce your burden by utilizing various deductions and exemptions. Section 80C allows up to ₹1.5 lakh deductions on investments in PPF, EPF, NSC, life insurance, and Sukanya Samriddhi Yojana. Section 80D provides tax benefits on health insurance premiums, up to ₹25,000 for individuals and ₹50,000 for senior citizens. Section 24(b) offers a ₹2 lakh deduction on home loan interest for self-occupied properties.

Salaried individuals can claim House Rent Allowance (HRA) based on actual rent paid, while Leave Travel Allowance (LTA) allows tax-free claims on domestic trips twice in four years. Contributions to the National Pension System (NPS) qualify for deductions beyond Section 80C limits, helping secure retirement savings. Donations to registered charitable organizations are also eligible for tax benefits.

Additional exemptions include agricultural income, which is completely tax-free, and preventive health check-up deductions up to ₹5,000. Understanding and leveraging these exemptions can significantly lower tax liability while ensuring financial security. By making smart investment choices and taking advantage of available deductions, taxpayers can optimize savings and maximize returns. Proper planning helps individuals keep more of their hard-earned money while complying with tax regulations.