ITR 2024: Save Tax Money without Investing Anything under Old Tax Regime; Know How?

The various provisions under Income Tax point to different ways a taxpayer can minimize his tax payable. These provisions enable taxpayers to reduce their tax liability via eligible expenses, even if they didn’t make investments related to tax saving.

Here are key ways to Save on Taxes under the Old Tax Regime: 

Education Loan Interest

According to section 80E, the interest payable on a loan for the self-education or education of a child can be claimed as a deduction. This deduction is unlimited and a claim upto the eight years before the year in which repayment starts.

Children’s Tuition Fees

Tax credit allowed to employees under section 80C for the expenses incurred for the payment of tuition fees, any amount paid as tuition fee to any university within the territory of India is tax-exempt for taxpayers up to Rs. 1,50,000 per annum. This entails the full-time education of up to two children, namely, in playschool, pre-nursery, and nursery classes. It must noted that development fees, donations, or any other similar expenses are not considered.

Donations to Charitable Organizations

Section 80G of the Income Tax Act 1961, introduced the feature to claim a deduction for donations to be made in the taxable income for charitable organizations. Depending on the other requirements and conditions that have been put forward by the organization, the deduction that can be claimed is either to the tune of 50% or 100% of the amount of the donation. On the tax return, the donor is required to disclose the PAN, the address of the recipient and the amount of donation.

Medical Insurance Premiums

Section 80D deals with the deduction for expenses towards the owner, spouse, children, and parent’s medical insurance premium. Section 80D enables people to deduct Rs. 25000 each year in respect of expenditure incurred on themselves, their spouse and their children. The limit to claim deduction for senior citizens is Rs. 50000.

Interest on Home Loans and Principal

Individuals can claim up to Rs. 2 lakh per year in interest on self-occupied home loans under Section 24(b). Additionally, the principal repayment is eligible for a deduction under Section 80C, however, these benefits were only accessible under the old tax regime.

Rent Paid

Residents of the rented building can claim the deduction of the amount of rent paid as House Rent Allowance (HRA) under Section 10. The deduction amount is determined by the individual’s salary and city of residence.

These provisions give taxpayers several chances to bring down the amount of tax payable. It is advised to consult a tax consultant or financial advisor before proceeding with these options properly and knowing the legal procedures that relate to the case.