3 Tax-Saving Basics Every Salaried Person Should Know

Saving tax does not have to be complicated. Here are three basics every salaried person in India should understand.

1. Section 80C (up to Rs 1.5 lakh): Investments like ELSS mutual funds, PPF, EPF, and life insurance premiums qualify. ELSS is popular because it has the shortest lock-in (3 years) and offers growth potential.

2. Health insurance under Section 80D: Premiums for health insurance for yourself and your family are deductible. This protects your finances and reduces tax at the same time.

3. Choose the right tax regime: Compare the old regime (with deductions) and the new regime (lower rates, fewer deductions) each year. The best choice depends on how many deductions you actually claim.

A quick tip: do not buy products just to save tax at the last minute in March. Choose investments that also match your goals. Tax saving should be a by-product of good planning, not the main reason.

This article is educational and does not constitute investment or tax advice. Please consult a qualified professional for your specific situation.