Taxpayers can save income tax in these 10 ways, which no one tells you quickly

ITR 2025: There are so many ways to save tax, which you probably do not know about. Before filing income tax return this time, definitely take a look at these. A little hard work can save you a lot of money.

ITR 2025: Taxpayers often resort to the old and well-known methods to save income tax, such as Section 80C (savings and investments) or 80D (health insurance), but did you know that there are many other rules that can be used to reduce your tax significantly? Unfortunately, these deductions are often missed due to lack of information or complexity.

Therefore, before filing your Income Tax Return (ITR) this year, take some time to take a look at these less discussed but important tax sections. A little awareness can reduce your tax burden. Bharat Dhawan, Managing Partner of Forvis Mazars in India, is giving you 10 tips to save tax. Let us tell you that all these tips are for those under the old tax regime.

1. Do you pay rent but don’t get HRA? (Section 80GG)

Most salaried people get HRA (House Rent Allowance), but if you are a professional or do a job where HRA is not available and you pay rent, then Section 80GG can be useful for you. Under this, the exemption you get on rent can be up to ₹5,000 per month or 25% of your total annual income (whichever is less). There is just one condition, you should not have your own house at your workplace.

2. Expenses on treatment of critical illness? (Section 80DDB)

If you or your dependent (such as parents, spouse, children) have undergone treatment for diseases such as cancer, Parkinson’s, critical kidney disease, then take advantage of this exemption. This exemption can be up to ₹40,000 for general public and up to ₹1,00,000 for senior citizens. For this, you will have to keep a prescription written by a specialist doctor for the treatment of the disease.

3. Expenses on care of a disabled dependent? (Section 80DD)

If any of your dependents (such as child, sibling, parents) is disabled and you pay for his care, treatment, training or life insurance premium in his name, then you can get exemption under this section. This exemption is up to ₹75,000 for general disability (40% to 80%) and up to ₹1.25 lakh per annum for severe disability (80% or more).

4. Are you a disabled person yourself? (Section 80U)

If you yourself are disabled, then section 80U directly gives you tax exemption, whether you have spent or not. A direct exemption of ₹75,000 is available on general disability and ₹1.25 lakh on severe disability. You just have to get a disability certificate from an authorized medical authority.

Note, there is a difference between 80DD and 80U. 80DD is available to the person who takes care of a disabled member of the family, while 80U is available to the disabled person himself.

5. Have you taken a loan for studies? (Section 80E)

If you or your parents have taken an education loan for your (or child’s) higher education (graduation or post-graduation), then the entire amount of interest paid on it is tax exempt. This exemption can be available till the loan is repaid or for a maximum of 8 years (whichever is earlier). There is no maximum limit here and the application is applicable for both studies in India and abroad.

6. Bought a house for the first time? (Section 80EE)

If you have bought your house for the first time and the purchase was made between 1 April 2016 and 31 March 2017, then you can get a special exemption. The condition is that the price of the house should not be more than ₹50 lakh and the loan sanctioned should not be more than ₹35 lakh. In such a case, an additional ₹50,000 per annum is exempt from the interest paid on the home loan. This exemption is over and above the interest exemption available under Section 24 (b).

7. Took a loan for an affordable house? (Section 80EEA)

This new section was introduced in Budget 2019. If you have taken a loan to buy an ‘affordable housing’, then you can get an additional deduction of up to ₹1.5 lakh on the loan interest. The condition is that the registry value (stamp duty value) of the house should not exceed ₹45 lakh and the loan should be approved between 1 April 2019 and 31 March 2022. Also, if you are taking advantage of section 80EE, then you cannot take advantage of this.

8. Interest income from bank? (For senior citizens – Section 80TTB)

Senior citizens above 60 years of age get a deduction of up to ₹50,000 on interest income from bank deposits (FD, RD) or savings account. Often people pay attention to the interest on FD, but forget the interest on savings account.

9. Minor allowances in employment? (Section 10(14) and Rule 2BB)

Many employees get certain allowances that are fully or partially tax-free. For example, transport allowance for disabled employees, children’s education allowance (₹100/month per child), or hostel fee allowance (₹300/month per child). These small exemptions can add up to a significant saving.

10. Interest on home loan? (Section 24(b))

This section is quite well-known, yet sometimes gets mixed up with 80C. If you have purchased a house for your own residence and have taken a loan on it, then the interest on the loan is exempted up to ₹2 lakh per annum. You can get this exemption even if you are not taking exemption on the principal amount of the loan under Section 80C. The only condition is that the loan should be taken to buy or construct a house and the construction of the house should be completed within 5 years of taking the loan.

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