As a taxpayer, it is important to make your investments before March 31 if you want to claim tax exemptions under the old tax regime.
However, if you have opted for the new tax regime, you will not be able to claim tax benefits on your investments. The old tax regime still allows tax exemptions, but only if the investments are made on or before March 31.
Key Investments for Tax Benefits Under the Old Tax Regime
Here are some investments that can help you claim tax benefits under the old tax regime:
House Rent Allowance (HRA) Exemption
1) Salaried individuals can claim HRA exemption under Section 10(13A).
2) This exemption is not available in the new tax regime.
Tax-Saving Investments Under Section 80C
1) Taxpayers can invest up to ₹1.5 lakh in certain financial instruments to claim deductions.
2) Eligible investments include:
ELSS (Equity Linked Savings Scheme)
Sukanya Samriddhi Yojana (SSY)
Public Provident Fund (PPF)
National Savings Certificate (NSC)
Senior Citizen Savings Scheme (SCSS)
Life Insurance
Kisan Vikas Patra (KVP)
Post Office Term Deposit
Other Tax Deductions
Section 80D: Deduction for health insurance premium (up to ₹25,000 for individuals and ₹50,000 for senior citizens).
Section 80DD: Deduction for expenses on a disabled dependent.
Section 80G: Deduction for donations to approved relief funds and charitable organizations.
Important Points to Remember
1) These tax deductions are only available under the old tax regime.
2) The new tax regime (now the default option) does not allow these exemptions and deductions.
3) There are limits on deductions—for example, under Section 80C, the maximum claimable amount is ₹1.5 lakh. Any investment beyond this will not result in additional tax savings.
4) If you are unsure whether the old tax regime will help you save more, use an income tax calculator. The tax department provides an official tax calculator on its website to compare tax amounts under both regimes.
