Ways to Reduce Tax (Old Regime)

If your income is higher and you choose the old regime, these deductions help.

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2️⃣ Invest Under 80C (₹1.5 lakh deduction)

Under Section 80C, you can claim up to ₹1.5 lakh deduction.

Examples:

• Public Provident Fund (PPF)

• Employees' Provident Fund (EPF)

• Equity Linked Savings Scheme (ELSS)

• Life insurance premium

• Tuition fees for children

• House loan

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3️⃣ Health Insurance Deduction

Under Section 80D

You can deduct:

• ₹25,000 for self/family

• ₹50,000 for senior citizen parents

Example
Premium ₹20,000 → ₹20,000 tax deduction

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4️⃣ Home Loan Benefits

If you have a house loan:

• Interest deduction under Section 24 (up to ₹2 lakh)

• Principal under 80C

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5️⃣ National Pension System (Extra Deduction)

Invest in National Pension System

You get an extra ₹50,000 deduction under Section 80CCD(1B).

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6️⃣ Education Loan Interest

Under Section 80E

• Full interest amount can be deducted.

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7️⃣ Donations

Donations to charities under Section 80G can reduce taxable income.

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Example Tax Saving

Income: ₹9,00,000

Deduction	Amount
80C investments	₹1,50,000
Health insurance	₹25,000
NPS	₹50,000
Standard deduction	₹50,000

Total deductions = ₹2,75,000

Taxable income ≈ ₹6,25,000

Tax becomes very low or zero depending on regime.