Strategic Tax Planning & Savings for smart financial decisions

A smart way to save tax is by claiming NPS contributions made for your children. This can help you secure their financial future while giving you an additional deduction of up to ₹50,000 under Section 80CCD(1B).

If you've received salary arrears or an advance, you can claim tax relief under Section 89(1). The process is now fully electronic and integrated into the ITR portal, making it a hassle-free way to reduce your tax liability.

Don't underestimate the importance of a rent receipt. It is the primary document needed to claim House Rent Allowance (HRA) benefits and can also help you claim deductions under Section 80GG if you don't receive HRA.

Yes, you can claim HRA exemption even while living with your parents. I can guide you on the correct procedure, which involves having a rental agreement and ensuring your parents declare the rent as income in their ITRs.

For cooperative societies, interest earned on Fixed Deposits with cooperative banks is eligible for deduction under Section 80P. This is a specific provision that can lead to significant tax savings.

The choice between the new and old tax regimes depends on your financial habits. The old regime is better for those with high investments in tax-saving schemes, while the new regime benefits those with fewer deductions.

For taxpayers with business or professional income, Form 10-IEA is crucial. You must file this form before your ITR due date if you wish to opt out of the new tax regime and switch back to the old one.

In this video, I discuss the 2025 budget highlights, including the increased standard deduction and the new tax exemption limit of up to ₹12 lakhs. These changes are a big update for the middle class.

I break down more key updates from the 2025 budget. This includes an enhanced interest deduction for senior citizens under Section 80TTB and an increased TDS threshold for rent under Section 194I, helping more people save tax.