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Personal Finance News

ITR filing 2025: Income up to ₹12 lakh is not tax-free this year; check old regime tax-saving options

Upstox
By Upstox News Desk

3 min read | Updated on February 25, 2025, 18:54 IST

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SUMMARY

Under the old tax regime, you can claim deductions for eligible investments made by March 31, 2025. However, if you opt for the new tax regime, you won't be able to claim these benefits.

old regime tax saving options 2025

Under the old tax regime, you can claim deductions for eligible investments. | Image source: Shutterstock

The Finance Bill 2025 has proposed to make income up to ₹12 lakh tax-free under the new tax regime. Salaried employees will be allowed an additional standard deduction of ₹75,000 under the new regime.

Although the Finance Bill 2025 provisions are designed to benefit a large number of taxpayers earning up to ₹12 lakh, they will not be applicable when you file your taxes in 2025.

This year, you will be filing your income tax return for the financial year (FY) 2024-25, also known as the assessment year (AY) 2025-26. If your income for FY 2024-25 exceeds the taxable limit, you can reduce your tax liability by investing in schemes that qualify for deductions under the old tax regime. The deadline to make these investments is March 31, 2025.

Please note, the changes announced in Finance Bill 2025 will apply from FY 2025-26 or AY 2026-27.

Tax-saving investment options under the old tax regime

Under the old tax regime, you can claim deductions for eligible investments made by March 31, 2025. However, if you opt for the new tax regime, you won't be able to claim these benefits.

The following are some popular tax-saving investment options under the old regime that you can explore:

Investment options under Section 80C: You can invest up to ₹1.5 lakh in the following tax-saving instruments to claim deductions under Section 80C.
  • ELSS (Equity Linked Savings Scheme)
  • Sukanya Samriddhi Yojana (SSY)
  • Public Provident Fund (PPF)
  • National Savings Certificate (NSC)
  • Senior Citizen Savings Scheme (SCSS)
  • Life Insurance
  • 5-year Post Office Term Deposit
  • 5-year tax-saving fixed deposit
Insurance payment under Section 80D: You can claim deductions for health insurance premiums, with a limit of ₹25,000 (₹50,000 for senior citizens). Certain deductions are also available for expenses related to a disabled dependent.
Additional tax-saving under NPS: Under Section 80CCD(1B), you can claim an extra deduction of up to ₹50,000 by investing in the National Pension System (NPS). This is in addition to the ₹1.5 lakh deduction limit available under Section 80C.
Apart from the above, you can also reinvest your long-term capital gains from residential property and other capital assets to avoid taxes. (Check details here)
Please note that the above deductions are available only to taxpayers who have chosen the old tax regime. If you're unsure whether the old tax regime will result in lower taxes for you, our income tax calculator can help. You can use it to compare your tax liability under both the old and new regimes.
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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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