Okay, let’s be honest — the word tax makes most of us uncomfortable. It’s like that awkward relative you see once a year, and you’re never quite sure what to say or do.
This year, I made a promise to myself: I’m going to stop being clueless about where my salary goes. Not just cribbing in March when Form 16 shows up and it’s too late to fix anything.
So I’ve been doing some digging — nothing crazy, just simple ways to save tax legally (because obviously, jail doesn't look good on anyone’s resume 😅 ).
First things first — Old Regime or New?
This one tripped me up at first. The new tax regime looks simple at first glance. Lower tax slabs, no paperwork, no investment proofs… sounds dreamy, right?
But here’s the catch: you lose all your exemptions.
No HRA, no 80C, no standard deductions, nada.
I actually ran both through a tax calculator (thank god for those online tools), and boom — old regime still saved me more.
Mostly because I already have a bunch of deductions going on (some without even trying).
80C Is Still the OG
You know how some things never go out of style? Like Maggi or complaining about traffic?
Well, Section 80C is kind of that. You can claim up to ₹1.5 lakhs.
I didn’t even realize I was already halfway there:
- My EPF? That’s automatic.
- A small PPF account I forgot I even had — still running.
- Paid my LIC premium last month. That counts too.
Suddenly, I was already hitting ₹1.2L. Just needed a little ELSS investment to top it up. Felt kinda proud of that one 😌
Rent? Thank You, HRA.
If you live in a rented place and aren’t claiming House Rent Allowance (HRA), you’re basically giving away free money.
I didn’t care about this last year (was too lazy to ask my landlord for rent receipts tbh). This time, I got smart.
Even if you’re paying rent to your parents — yeah, that works too (just make sure it’s documented).
It’s a weirdly satisfying hack, and it’s totally allowed.
Health Insurance = Peace + Tax Benefit
I never thought of insurance as a tax-saving tool — until last year, when my dad had a hospital visit and the bills were a wake-up call.
Now I have a ₹25,000 plan for myself and ₹50,000 for parents (senior citizens). Under Section 80D, that gives me a ₹75,000 deduction.
And more importantly — some peace of mind.
That Home Loan EMI?
If you’ve got a home loan, congrats. You’re broke, yes, but you’re also sitting on some solid deductions:
- Up to ₹2 lakh on interest under Section 24(b)
- Another ₹1.5 lakh on principal under 80C
My cousin just bought a flat and was whining about EMIs. I told him to cheer up — at least Uncle Sam (well, Indian Sam) is cutting him some slack.
Small Savings That Add Up
Some underrated but totally legit things:
- NPS (National Pension Scheme): You get ₹50,000 extra deduction over and above 80C. That’s like dessert after a buffet.
- Donations (Section 80G): I gave to a local animal shelter — felt good, and I could claim 50% of it.
- Education Loan Interest: My friend is still paying off his MBA loan. He can deduct the interest under Section 80E for up to 8 years. That's long-term relief right there.
The Lazy Mistake Most of Us Make
Want to know the real kicker? Most of us already qualify for these deductions — we just don’t claim them in time.
Last year, I submitted my proofs late. My HR said “Sorry, can’t do anything now.” I lost around ₹15,000 in refund. That one hurt.
So this year, I’ve got a folder in Google Drive called “Tax Stuff 2025-26” — receipts, statements, even screenshots.
Sounds nerdy, but future-me will thank current-me.
So… Is This All Worth It?
Honestly? It’s not even about saving ₹50,000 or ₹80,000.
It’s about not feeling like a fool every time tax season rolls around.
I still mess up — like forgetting to link PAN and Aadhaar on time (ugh), or blindly trusting a friend’s advice without checking. But I’m learning.
Bit by bit. Form by form.
And if you’re reading this, maybe you’re in the same boat. Trying to figure out how to play smart with your salary, without doing anything shady.
I say — let’s figure it out together. No jargon. No stress. Just some good old common sense and a few legal loopholes your CA doesn’t tell you unless you ask 😄
Till then, here’s to smart moves and smaller tax bites. 🥂