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Total income before any deductions

₹75,000 for FY 2024-25

Max ₹1.5 lakhs (PPF, ELSS, LIC, etc.)

Max ₹25,000 (₹50,000 for senior citizens)

Additional ₹50,000 for NPS investment

Max ₹2 lakhs under Section 24(b)

Tax Summary (Old Regime)

₹96,200

Total Tax Payable

Tax Calculation Details

Gross Income₹12,00,000
Total Deductions₹3,00,000
Taxable Income₹9,00,000
Tax Before Cess₹92,500
Health and Education Cess (4%)₹3,700
Tax Savings from Deductions₹59,800

Tax-Saving Investments under Section 80C

  • ELSS Mutual Funds - Lowest lock-in (3 years), potential for highest returns
  • PPF (Public Provident Fund) - 15-year lock-in, EEE status, 7.1% interest rate
  • Life Insurance Premium - Term insurance premium qualifies for deduction
  • Sukanya Samriddhi Yojana - For girl child, 8.2% interest, best for parents

Old vs New Tax Regime (FY 2024-25)

  • Old Regime - Higher tax rates but allows deductions under 80C, 80D, HRA, etc. Better if deductions exceed ₹3.75 lakhs
  • New Regime - Lower tax rates, standard deduction of ₹75,000, but no other deductions. Better for minimal investments

Tax Slabs (Old Regime FY 2024-25)

Income RangeTax Rate
Up to ₹2,50,000Nil
₹2,50,001 to ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,00030%

Additional Tax-Saving Options

  • Section 80D - Health Insurance up to ₹1 lakh for self, spouse, children and parents
  • Section 80E - Education Loan Interest with no upper limit, available for 8 years
  • Section 80G - Donations with 50% or 100% deduction for eligible charities
  • Section 80TTA - Savings Bank Interest up to ₹10,000
  • Section 24(b) - Home Loan Interest up to ₹2 lakhs for self-occupied property

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