{"id":553,"date":"2025-12-15T14:44:32","date_gmt":"2025-12-15T14:44:32","guid":{"rendered":"https:\/\/blog.zlendo.com\/suite\/?p=553"},"modified":"2025-12-15T14:44:41","modified_gmt":"2025-12-15T14:44:41","slug":"tax-saving-tips-best-ways-to-reduce-tax","status":"publish","type":"post","link":"https:\/\/blog.zlendo.com\/suite\/tax-saving-tips-best-ways-to-reduce-tax\/","title":{"rendered":"Tax Saving Tips: Best Ways to Reduce Tax Under the Old Tax Regime (FY 2025\u201326)\u00a0"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"802\" height=\"400\" src=\"https:\/\/blog.zlendo.com\/suite\/wp-content\/uploads\/sites\/2\/2025\/12\/Blog-banner-802x400-95.png\" alt=\"tax saving tips\" class=\"wp-image-558\" srcset=\"https:\/\/blog.zlendo.com\/suite\/wp-content\/uploads\/sites\/2\/2025\/12\/Blog-banner-802x400-95.png 802w, https:\/\/blog.zlendo.com\/suite\/wp-content\/uploads\/sites\/2\/2025\/12\/Blog-banner-802x400-95-300x150.png 300w, https:\/\/blog.zlendo.com\/suite\/wp-content\/uploads\/sites\/2\/2025\/12\/Blog-banner-802x400-95-768x383.png 768w, https:\/\/blog.zlendo.com\/suite\/wp-content\/uploads\/sites\/2\/2025\/12\/Blog-banner-802x400-95-800x400.png 800w\" sizes=\"auto, (max-width: 802px) 100vw, 802px\" \/><\/figure>\n\n\n\n<p class=\"has-medium-font-size\">As we head towards the last quarter of <strong>FY 2025\u201326<\/strong>, salaried individuals should start reviewing their tax planning strategy carefully. One of the most crucial decisions during this period is selecting between the <strong>old tax regime<\/strong> and the <strong>new tax regime<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">While the new tax regime provides reduced tax rates and tax-free income up to \u20b912 lakh, it removes most exemptions and deductions. Due to this limitation, a large number of salaried employees continue to choose the <strong>old tax regime<\/strong>, which offers multiple legal avenues to reduce taxable income.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">With digital payroll platforms like <strong><a href=\"https:\/\/zlendo.com\/zsuite\/\" data-type=\"link\" data-id=\"https:\/\/zlendo.com\/zsuite\/\" target=\"_blank\" rel=\"noopener\">Zlendo Suite<\/a><\/strong>, employees can conveniently manage salary structures, submit investment proofs, and ensure correct tax computation through a unified HR and payroll system.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">If you have opted for the old tax regime, the following sections explain the most effective ways to lower your tax liability legally.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Salary-Based Tax Exemptions<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Under the old tax regime, certain components of salary are either exempt or deductible, helping reduce overall taxable income.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Standard Deduction (Section 16)<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">All salaried individuals and pensioners are eligible for a <strong>standard deduction of \u20b950,000<\/strong>, which is automatically reduced from taxable salary income.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>House Rent Allowance \u2013 HRA (Section 10(13A))<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">For employees living in rented accommodation, HRA exemption is calculated as the <strong>lowest<\/strong> of the following:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Actual HRA received&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Rent paid minus 10% of salary&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>50% of salary for metro cities or 40% for non-metro cities&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Other Salary Allowances<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">The old tax regime also allows exemptions or deductions for the following:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Leave Travel Allowance (LTA)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Professional Tax&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Entertainment Allowance (for eligible employees)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Conveyance allowance for specially-abled individuals&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Home Loan Tax Benefits<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Home Loan Interest (Section 24(b))<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Taxpayers can claim a deduction of <strong>up to \u20b92 lakh per year<\/strong> on interest paid for a self-occupied house property.&nbsp;<br>For let-out properties, the entire interest amount is deductible, subject to overall loss adjustment limits.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Home Loan Principal Repayment (Section 80C)<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The principal portion repaid on a home loan qualifies for deduction under <strong>Section 80C<\/strong>, within the overall limit of \u20b91.5 lakh.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Chapter VI-A Deductions (Major Tax-Saving Sections)<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Section 80C \u2013 Investments &amp; Payments (Up to \u20b91.5 Lakh)<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Eligible investments and expenses under this section include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Employee Provident Fund (EPF)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Public Provident Fund (PPF)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Life insurance premiums&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>ELSS mutual funds&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>5-year tax-saving fixed deposits&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>National Savings Certificate (NSC)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Sukanya Samriddhi Yojana (SSY)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Tuition fees for up to two children&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Home loan principal repayment&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>National Pension System \u2013 NPS (Section 80CCD)<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li><strong>80CCD(1):<\/strong> Employee contribution (part of \u20b91.5 lakh under Section 80C)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li><strong>80CCD(1B):<\/strong> Additional deduction of \u20b950,000&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li><strong>80CCD(2):<\/strong> Employer contribution up to 10\u201314% of salary, fully exempt&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Health Insurance (Section 80D)<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>\u20b925,000 for self, spouse, and dependent children&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>An extra deduction of \u20b925,000 is available for parents, which increases to \u20b950,000 if they qualify as senior citizens.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Preventive health check-ups allowed up to \u20b95,000&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Education Loan Interest (Section 80E)<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Interest paid on education loans for higher studies is fully deductible for <strong>up to 8 consecutive years<\/strong>, with <strong>no upper limit<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Savings Account Interest<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80TTA:<\/strong> Deduction up to \u20b910,000 (non-senior citizens)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80TTB:<\/strong> Deduction up to \u20b950,000 (senior citizens)&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Donations (Section 80G)<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Contributions made to approved charitable institutions are eligible for <strong>50% or 100% deduction<\/strong>, subject to applicable limits and conditions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Disability &amp; Medical Treatment Benefits<\/strong>&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80DD:<\/strong> \u20b975,000 to \u20b91,25,000 for dependent with disability&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80DDB:<\/strong> \u20b940,000 to \u20b91,00,000 for specified medical treatments&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80U:<\/strong> \u20b975,000 to \u20b91,25,000 for self-disability&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rent Paid Without HRA (Section 80GG)<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">If an employee does not receive HRA, deduction is available based on the lowest of:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>\u20b95,000 per month (\u20b960,000 annually)&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>25% of total income&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-medium-font-size\">\n<li>Rent paid minus 10% of total income&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><em>(Form 10BA submission is mandatory)<\/em>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other Important Deductions<\/strong>&nbsp;<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80CCC:<\/strong> Pension or annuity plan contributions&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80CCH:<\/strong> Agnipath Corpus contributions&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Section 80EE \/ 80EEA:<\/strong> Additional interest deduction for first-time or affordable home buyers&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Summary Table: Old Tax Regime Deductions (FY 2025\u201326)<\/strong>&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Section<\/strong>&nbsp;<\/td><td><strong>Description<\/strong>&nbsp;<\/td><td><strong>Limit \/ Notes<\/strong>&nbsp;<\/td><\/tr><tr><td>16(ia)&nbsp;<\/td><td>Standard Deduction&nbsp;<\/td><td>\u20b950,000&nbsp;<\/td><\/tr><tr><td>10(13A)&nbsp;<\/td><td>House Rent Allowance&nbsp;<\/td><td>Least of prescribed limits&nbsp;<\/td><\/tr><tr><td>24(b)&nbsp;<\/td><td>Home Loan Interest&nbsp;<\/td><td>\u20b92,00,000&nbsp;<\/td><\/tr><tr><td>80C&nbsp;<\/td><td>Investments &amp; Payments&nbsp;<\/td><td>\u20b91,50,000&nbsp;<\/td><\/tr><tr><td>80CCC&nbsp;<\/td><td>Pension Plans&nbsp;<\/td><td>Included in \u20b91.5 lakh&nbsp;<\/td><\/tr><tr><td>80CCD(1)&nbsp;<\/td><td>Employee NPS&nbsp;<\/td><td>Included in \u20b91.5 lakh&nbsp;<\/td><\/tr><tr><td>80CCD(1B)&nbsp;<\/td><td>Additional NPS&nbsp;<\/td><td>\u20b950,000&nbsp;<\/td><\/tr><tr><td>80CCD(2)&nbsp;<\/td><td>Employer NPS&nbsp;<\/td><td>Up to 10\u201314%&nbsp;<\/td><\/tr><tr><td>80D&nbsp;<\/td><td>Health Insurance&nbsp;<\/td><td>\u20b925k + \u20b925k\/\u20b950k&nbsp;<\/td><\/tr><tr><td>80DD&nbsp;<\/td><td>Dependent Disability&nbsp;<\/td><td>\u20b975k \/ \u20b91.25L&nbsp;<\/td><\/tr><tr><td>80DDB&nbsp;<\/td><td>Medical Treatment&nbsp;<\/td><td>\u20b940k \u2013 \u20b91L&nbsp;<\/td><\/tr><tr><td>80E&nbsp;<\/td><td>Education Loan Interest&nbsp;<\/td><td>Full interest&nbsp;<\/td><\/tr><tr><td>80EE \/ 80EEA&nbsp;<\/td><td>Home Loan (Special)&nbsp;<\/td><td>\u20b950k \/ \u20b91.5L&nbsp;<\/td><\/tr><tr><td>80G&nbsp;<\/td><td>Donations&nbsp;<\/td><td>50% or 100%&nbsp;<\/td><\/tr><tr><td>80GG&nbsp;<\/td><td>Rent Without HRA&nbsp;<\/td><td>Up to \u20b960,000&nbsp;<\/td><\/tr><tr><td>80TTA&nbsp;<\/td><td>Savings Interest&nbsp;<\/td><td>\u20b910,000&nbsp;<\/td><\/tr><tr><td>80TTB&nbsp;<\/td><td>Senior Citizen Interest&nbsp;<\/td><td>\u20b950,000&nbsp;<\/td><\/tr><tr><td>80U&nbsp;<\/td><td>Self Disability&nbsp;<\/td><td>\u20b975k \/ \u20b91.25L&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Old vs New Tax Slab Rates (Applicable from 1 April 2026)<\/strong>&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>New Regime Income<\/strong>&nbsp;<\/td><td><strong>Rate<\/strong>&nbsp;<\/td><td><strong>Old Regime Income<\/strong>&nbsp;<\/td><td><strong>Rate<\/strong>&nbsp;<\/td><\/tr><tr><td>Up to \u20b94,00,000&nbsp;<\/td><td>Nil&nbsp;<\/td><td>Up to \u20b92,50,000&nbsp;<\/td><td>Nil&nbsp;<\/td><\/tr><tr><td>\u20b94\u20138 lakh&nbsp;<\/td><td>5%&nbsp;<\/td><td>\u20b92.5\u20135 lakh&nbsp;<\/td><td>5%&nbsp;<\/td><\/tr><tr><td>\u20b98\u201312 lakh&nbsp;<\/td><td>10%&nbsp;<\/td><td>\u20b95\u20137.5 lakh&nbsp;<\/td><td>10%&nbsp;<\/td><\/tr><tr><td>\u20b912\u201316 lakh&nbsp;<\/td><td>15%&nbsp;<\/td><td>\u20b97.5\u201310 lakh&nbsp;<\/td><td>15%&nbsp;<\/td><\/tr><tr><td>\u20b916\u201320 lakh&nbsp;<\/td><td>20%&nbsp;<\/td><td>\u20b910\u201312.5 lakh&nbsp;<\/td><td>20%&nbsp;<\/td><\/tr><tr><td>\u20b920\u201324 lakh&nbsp;<\/td><td>25%&nbsp;<\/td><td>\u20b912.5\u201315 lakh&nbsp;<\/td><td>25%&nbsp;<\/td><\/tr><tr><td>Above \u20b924 lakh&nbsp;<\/td><td>30%&nbsp;<\/td><td>Above \u20b915 lakh&nbsp;<\/td><td>30%&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Closing Note<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">When used strategically, the <strong><a href=\"https:\/\/blog.zlendo.com\/suite\/2025\/11\/18\/new-vs-old-tax-regime-2026-salaried-employees\/\" data-type=\"link\" data-id=\"https:\/\/blog.zlendo.com\/suite\/2025\/11\/18\/new-vs-old-tax-regime-2026-salaried-employees\/\">old tax regime<\/a><\/strong> provides extensive opportunities to reduce tax liability. By combining salary exemptions, investments, insurance coverage, and loan-related deductions, employees can optimize their tax savings effectively.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">An integrated HR and payroll platform like <strong><a href=\"https:\/\/zlendo.com\/zsuite\/\" data-type=\"link\" data-id=\"https:\/\/zlendo.com\/zsuite\/\" target=\"_blank\" rel=\"noopener\">Zlendo Suite<\/a><\/strong> simplifies investment declarations, payroll compliance, and tax calculations\u2014making tax planning seamless for both employees and organizations.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we head towards the last quarter of FY 2025\u201326, salaried individuals should start reviewing their tax planning strategy carefully. One of the most crucial&#8230;<\/p>\n","protected":false},"author":1,"featured_media":560,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/posts\/553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/comments?post=553"}],"version-history":[{"count":5,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/posts\/553\/revisions"}],"predecessor-version":[{"id":559,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/posts\/553\/revisions\/559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/media\/560"}],"wp:attachment":[{"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/media?parent=553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/categories?post=553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.zlendo.com\/suite\/wp-json\/wp\/v2\/tags?post=553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}