Written by : Knowledge Centre Team
2025-10-11
1071 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.
Save Taxes While Building Long-Term Wealth
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 No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
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
Don’t Miss These Income Sources While Filing ITR
11 Aug '26
1165 Views
6 minute read
Learn which income sources you must declare in your ITR for AY 2027-28. Avoid penalties and ensure accurate tax filing with this essential guide.
Read More
Tax Saving
ITR-5 Form: What it is, Eligibilty & How to File for AY 27-28
07 Aug '26
1098 Views
7 minute read
File ITR-5 for AY 2027-28 with ease! A Step-by-step guide for partnerships, LLPs & associations to simplify your income tax return process.
Read More
Tax Saving
What is Income Tax in India? Know Income Taxation System
07 Aug '26
5737 Views
10 minute read
Learn everything about tax on income in India 2026 - what is income tax, who pays it, current tax slabs, and smart tips to reduce your tax liability.
Read More
Tax Saving
What is Tax Saving Fixed Deposit (FD)? Know the FD benefits & Rates in India
07 Aug '26
7302 Views
10 minute read
Discover tax saving fixed deposit benefits, how it saves tax under Section 80C and key tax saving FD rates available for 5-year tax-saving FDs in 2026.
Read More
Tax Saving
Income Tax on Family Pension: What You Should Know
07 Aug '26
1033 Views
8 minute read
Understand how family pension is taxed under Indian law, what deductions you can claim, and how to file your income tax return accurately and efficiently.
Read More
Tax Saving
Income Tax Calendar For India: Key Tax Filing Deadlines You Must Know
07 Aug '26
1026 Views
8 minute read
Stay updated with India’s income tax calendar. Know key filing deadlines for FY 2025–26 from ITR, TDS, advance tax, and avoid penalties.
Read More
Tax Saving
Section 80CCD (1B): Deductions Under Section 80CCD of Income Tax Act
06 Aug '26
1862 Views
7 minute read
Learn about tax benefits under Section 80CCD (1B) for NPS contributions, including additional deductions under Section 80CCD(1B) to maximize your savings.
Read More
Tax Saving
Wealth Tax in India: Its Meaning and How Does It Works
06 Aug '26
3251 Views
10 minute read
Explore wealth tax in India, a direct tax on high-value assets. Learn about its abolition and how it worked. Understand its impact with Canara HSBC Life Insurance.
Read More
Tax Saving
Form 12BB: Know the Purpose & Components of Form 12BB
06 Aug '26
4342 Views
8 minute read
Understand the importance of Form 12BB in tax filing. This comprehensive guide explains what Form 12BB is, its purpose, and how to use it effectively for accurate income tax declarations.
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
Popular Searches
- Tax Planning
- Income Tax Calculator
- TDS Vs TCS
- Section 80C
- What Is ITR
- Tax Concepts
- Section 80D
- Section 24
- 80DDB
- What is MAT?
- ITR-3 Form
- Term Insurance Tax Benefit
- TDS for Professional Fees
- Income Tax Slab FY 2025-26
- HRA Calculator
- TDS on Rent
- What is Income Tax Return?
- Income Tax for NRI
- How to File Income Tax?
- Section 80C Tax Benefits
- Old vs New Tax Regime
- LTCG Tax on Investments
- Tax Saving Options for Salaried
- Income Tax Rebate under 87A