Written by : Knowledge Centre Team
2025-10-11
1074 Views
8 minutes read
Share
Tax planning is crucial for employees who draw a salary, and requires extensive planning and discipline on their part. Each year, the tax filing season leaves salaried employees scurrying around to calculate the taxes they have to pay for that particular financial year. It is extremely important for employees to understand the different components involved, and prioritize tax planning at the beginning of the financial year. Furthermore, it is also important to understand the tax slab one belongs to, and get a better insight into the different components that make up an employee’s salary. Doing so helps one to better understand how to save on taxes, and enables them to plan ahead for the new financial year.
While being prudent helps in building wealth, adhering to certain guidelines, and following a few tips contribute to tax savings for salaried employees. Here are a few tax-saving tips which will substantially reduce your tax burden.
Ensure That You Understand and Take Advantage of Section 80C
When it comes to income tax and taxation of individuals, there is no other section more important for salaried employees than Section 80C of the Income Tax Act, 1961. By understanding the benefits under this section, employees can not only maximize the salary that they take home, but can also legally reduce the tax payout. Section 80C allows employees to claim tax deductions of up to Rs. 1.5 lakh, and offers a wide range of tax-saving options.
Start With Rs. 1.5 Lakh And Work Backwards
Based on one’s risk profile, financial goals and the amount of salary they draw, it is imperative for employees to draw up a list of tax-saving instruments to invest in. It is easier to work backwards after considering Rs. 1.5 lakh as the starting point, and spread it across different investment options, including life or health insurance policies, tax-saver FDs, public provident fund (PPF), ELSS, Senior Citizens Savings Scheme and National Pension System (NPS) among others.
By soliciting help, or by approaching a financial planner, one can zero in on investment options that best fit their financial goals and risk profile.
Maximize Your Tax Savings - Talk to an Expert
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy Holder NamePolicy No.
Policy NumberAddress of the Policyholder as per records
AddressUnclaimed Amount
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Ensure That You Pay Insurance Premiums
Under Section 80D of the Income Tax Act, 1961, policyholders can claim deduction of up to Rs. 25,000 on health insurance premiums. Furthermore, if the policyholder is a senior citizen, one can claim deduction of up to Rs. 50,000.
Similarly, under Section 80C, the amount paid towards life insurance premiums up to Rs. 1.5 lakh are exempted from tax.
Claim Tax Benefits If You’ve Taken Home Loans
Considering one has already applied for a home loan, they can claim tax benefits on the principal component of the equated monthly instalments (EMIs) under Section 80C of the Income Tax Act, with the overall limit being Rs. 1.5 lakh. Furthermore, under Section 24 of the Act, individuals can also claim deduction for the interest component on their home loan, with the limit being Rs. 2 lakh. However, one can only claim the deduction if the owner, or their family members are living at the property. In case the house is rented, then the entire interest is waived off as a deduction.
Claim Tax Deduction on House Rent Allowance (HRA)
Under Section 10 (13A) of the Income Tax Act, salaried employees working in places where they do not own residential properties can also claim tax deduction on house rent allowance (HRA), which is based on the rent amount. To claim the tax benefit on HRA, employees have to provide rent receipts along with other details to their employer for computing the exemption amount.
However, considering one does not get HRA, but still pays rent for their house or apartment, under Section 80GG , it is possible to claim deduction up to Rs. 60,000 annually.
Conclusion
Salaried employees often use the above mentioned provisions to avail tax benefits, and lower the tax outflow. There are several other options under Section 80C, such as travel and conveyance bills, and charitable donations, that enable greater tax saving for salaried employees.
Thus, it is extremely important to understand the various tax exemptions that employees can avail, while considering the tax exempt income limit. One such exemption may be availed through the Term Plan from Canara HSBC Life Insurance, which, under Section 80C of the Act, allows for tax deductions on premiums.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
Will Budget 2026 Allow Joint Taxation for Married Couples?
29 Jan '26
8 Views
8 minute read
Find out what Budget 2026 may introduce on joint taxation for married couples, expected benefits, policy outlook, and how it may impact taxpayers in India.
Read More
Tax Saving
What is Income Tax Return (ITR)? Meaning & Filing Process of Filing ITR
21 Jan '26
4902 Views
10 minute read
Learn what an Income Tax Return (ITR) is, why filing your income tax return is important, and how to file your ITR online via the Income Tax Department. Documents, forms, steps, and FY 2026-27 details included.
Read More
Tax Saving
What Is Advance Tax? How to Calculate Advance Tax and Pay It Online
20 Jan '26
2519 Views
9 minute read
Understand advance tax under income tax, who should pay it, how advance tax is calculated, due dates, and online payment steps to avoid penalties.
Read More
Tax Saving
Importance of Taxes in India: Why Taxes Matter?
15 Jan '26
1614 Views
7 minute read
Understand the importance of taxes in India, how they support public services, economic growth, welfare schemes, and national development.
Read More
Tax Saving
What Is SGST? Meaning, Rates & Applicability Explained
15 Jan '26
627 Views
5 minute read
Learn what SGST means, its full form, tax rates, applicability, and how it works under the GST system for intra-state transactions.
Read More
Tax Saving
What is the GST Council? Role, Members & How It Works
14 Jan '26
542 Views
5 minute read
Understand what the GST Council is, its structure, powers, and how it decides GST rates, laws, and policies across India.
Read More
Tax Saving
Why is Your ITR Refund Delayed and What Can You Do?
13 Jan '26
538 Views
5 minute read
ITR refund delayed? Know the common reasons, timelines, and step-by-step actions to track, raise grievances, and speed up your income tax refund.
Read More
Tax Saving
80CCC: What is Deduction Under Section 80CCC?
11 Jan '26
1186 Views
6 minute read
What is Section 80CCC? How can you claim deductions under section 80CCC? Learn the eligibility criteria to claim a deduction under section 80CCC with a life insurance policy.
Read More
Tax Planning
How to Save Tax on Salary Above ₹15 Lakhs? | Tax Saving Guide 2026
10 Jan '26
4817 Views
14 minute read
Learn how to save tax on salary above ₹15 lakhs using effective tax saving options, deductions, exemptions, and smart income tax planning strategies
Read More
Tax Saving
Tax Savings - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Family Shield: Enhanced Protection
iSelect Smart360 Term Plan
- 3 Plan options
- Life cover till 99 years
- Steady income benefit
- Block your premium at inception
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Start Young, Pay Less, Stay Secured
Young Term Plan
- Life cover till 99 years
- Coverage for spouse
- Block your premium rate
- Covers 40 critical illness