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Time To Move Beyond Tax-Saving Limits And Focus On Smarter Tax Planning

April 30, 2025

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Mint Bangalore

A client once rushed to buy an insurance policy in March, only to realise later it didn't meet her needs or offer the best tax benefits.

- VINAYAK BHAT

ings and investment among the working class. But deduction limits haven't kept pace. The Section 80C limit has been ₹1.5 lakh since 2015; Section 80D for insurance premiums, ₹25,000 since 2016 (for those under 60); and housing loan interest under Section 24(b), ₹2 lakh since 2015.

These limits are low, especially when compared to inflation, rising costs, and growing financial responsibilities. While newer deductions like 80EEA (home loan), 80EEB (e-vehicle loan), and 80CCD(IB) (NPS self-contribution) have been added, the overall deduction values remain largely stagnant.

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