Tax Hacks Every Young Indian Taxpayer Should Know

Fortune India

Tips For Every Young Indian Taxpayer

These simple tax tips can help you save more money, avoid mistakes, and stay stress-free every financial year.

Hack 1 — Choose the Right Tax Regime

Always compare the old and new tax regimes before filing, because while the new regime offers lower tax rates, the old regime could save you more if you claim eligible deductions and exemptions.

Hack 2 — Use Section 80C Wisely

When opting old tax regime, invest in options like ELSS funds, PPF, life insurance, or paying home loan EMIs, you can claim up to ₹1.5 lakh deduction under Section 80C and reduce your taxable income significantly.

Hack 3 — Save Through Health Insurance (Section 80D)

Paying premiums for your health insurance policies can help you claim deductions up to ₹75,000 under Section 80D, covering yourself, your family, and even senior citizen parents.

Hack 4 — Save tax on house rent allowance

Salaried and self-employed individuals can use HRA exemption under Section 10(13A) and Section 80GG, respectively.

Hack 5 — File Your ITR

Filing an ITR helps create a financial record, speeds up refunds, eases loan approvals, and strengthens your future visa applications.

Hack 6 — Invest in Tax-Saving FDs and NPS

Apart from Section 80C, you can invest in 5-year tax-saving fixed deposits and the National Pension System (NPS) to get additional deductions and build long-term wealth efficiently.

Use digital tools for tax management

Taxpayers must track income, investment, TDS, and refunds easily via government apps and portals.

Final Tip

The earlier you start tax planning, the better you can optimise your investments, maximise your savings, and enjoy a smooth, stress-free financial journey.