Old vs new tax regime — can you still claim 80C?
Under the old tax regime, Sections 80C, 80D, HRA, and home loan interest remain fully available. The new regime (default from FY 2023-24) offers lower slab rates but most deductions are not allowed — except employer NPS (80CCD(2)) and standard deduction. Choose your regime at the start of the year; switching is allowed each year for non-business taxpayers.
Section 80C — ₹1.5 lakh limit
Popular eligible investments and payments:
- ELSS mutual funds — 3-year lock-in; potential for equity returns; good for young earners
- PPF — 15-year lock-in; safe, tax-free maturity; ideal for long-term savers
- EPF — Employee contribution (employer share not counted in your 80C)
- Life insurance premium — LIC or private policies (max 10% of sum assured for policies after 2012)
- Home loan principal repayment — from bank certificate
- Children's tuition fees — max 2 children, full-time course only
- NSC, SSY, 5-year FD — bank/post office schemes with lock-in
- NPS Tier-I — additional ₹50,000 under 80CCD(1B) beyond 80C cap
Section 80D — health insurance
- Up to ₹25,000 for self, spouse, and dependent children
- Additional ₹25,000 for parents (₹50,000 if parents are senior citizens)
- Preventive health check-up: ₹5,000 within overall 80D limit
- Medical expenditure for senior citizen parents without insurance also eligible
Smart tax-saving strategy for salaried staff
- Declare investments to HR in Form 12BB at year start to reduce TDS
- Do not wait till March — spread ELSS/PPF through the year (SIP in ELSS)
- Buy adequate health cover before 31 March; premium paid counts for that FY
- Keep proofs: premium receipts, PPF passbook, home loan certificate, tuition fee receipts
- Compare old vs new regime with actual numbers before filing ITR
Mistakes that cost money
- Investing only for tax saving without liquidity planning (avoid locking everything in long FDs)
- Missing 80CCD(1B) NPS extra ₹50,000 deduction
- Claiming tuition fees for coaching classes — not eligible
- Not declaring investments to employer and then struggling for refund
AONETAX helps salaried professionals with tax planning, regime comparison, and ITR filing with maximum legitimate deductions. Book a consultation at your nearest branch or apply online.