For salaried workers, the government requires them to pay income tax on their wages. Based on a preset tax rate, their employers take it straight out of their paychecks. If you are a salaried person, you must know how can I save maximum tax on my salary. To save the maximum tax on your salary, you can utilise various tax-saving strategies and exemptions available under the Income Tax Act. I have shared a few tips below.
Tax Saving Options for Salaried Employees
Here are several ways you can try to reduce your taxable income and save on taxes:
You can claim deductions of up to Rs1.5 lakh under Section 80C. Investments that qualify include:
Public Provident Fund (PPF)
Employees Provident Fund (EPF)
National Pension Scheme (NPS)
Tax-saving Fixed Deposits
Equity-linked Saving Schemes (ELSS)
Life Insurance premiums
National Savings Certificates (NSC)
You can claim deductions for premiums paid on health insurance for yourself, your spouse, children, and parents. The limit is up to Rs25,000 (including Rs5,000 for preventive health check-ups) and up to Rs50,000 for older adults.
If you have taken an education loan for higher studies, you can claim a deduction on the interest paid on the loan under Section 80E without limit.
If you live in rented accommodation, you can claim HRA exemption. The exemption calculation depends on factors like the city of residence, salary, and rent paid.
Expenditures incurred on travel while on leave can be exempt under LTA.
You can get more
Easy Tax Saving Techniques for Salaried Employees. I hope you found this helpful.
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How to Save Tax for Salary Above 20 Lakhs?
How can I Save Maximum Tax on My Salary?
Nayan85
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2025-04-29T13:55:32+00:00 2025-04-29T13:56:00+00:00Comment
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