How To Save Tax On Salary Beyond 80C In 2025

Table of Contents

Introduction

The good news is that the Income Tax Act offers several other sections and exemptions beyond 80C that can help salaried individuals save significantly on taxes. In this guide, we’ll explore how to save tax on salary beyond 80C in 2025 using deductions under sections like 80D, 80CCD(1B), 24(b), and various allowances.

Most salaried professionals in India already know about the popular Section 80C deduction—up to ₹1.5 lakh per year for investments in PPF, ELSS, NSC, and life insurance premiums. But what if you’ve already exhausted 80C and still want to reduce your taxable income in 2025?

Why Salaried Professionals Need to Plan Beyond 80C

Salaries are subject to TDS (Tax Deducted at Source) every month.
High-income professionals often max out 80C deductions quickly.
To truly optimize tax savings, one must leverage other provisions such as NPS, health insurance, HRA, LTA, and home loan benefits.

Check our Tax Calculator to see how much you can save beyond 80C.

Top Ways to Save Tax on Salary Beyond 80C in 2025

1. Section 80D – Health Insurance Premiums

Deduction up to ₹25,000 for self, spouse, and children.
Additional ₹25,000 for parents (₹50,000 if senior citizens).
Covers medical insurance and preventive health check-ups.

[Read our Health Insurance Guide].

2. Section 80CCD(1B) – National Pension System (NPS)

Extra deduction of ₹50,000 over and above 80C.
Helps in retirement planning with equity + debt mix.
Employer’s contribution up to 10% of salary also exempt under 80CCD(2).

3. Section 24(b) – Home Loan Interest

Deduction up to ₹2 lakh annually on housing loan interest.
Applies to self-occupied property.
Combined with 80C principal repayment, home loans offer strong tax efficiency.

4. House Rent Allowance (HRA)

Salaried professionals living in rented accommodation can claim HRA deduction.
Exemption is the lowest of:
- Actual HRA received
- 40% of salary (50% in metro cities)
- Rent paid minus 10% of salary

5. Leave Travel Allowance (LTA)

Exemption for domestic travel costs (air/train/bus) for you and family.
Allowed twice in a 4-year block.

6. Section 80E – Education Loan Interest

100% deduction on interest paid (no cap) for higher education loans.
Available for up to 8 years.

7. Section 80G – Donations to Charities

Deduction for donations to approved charities and NGOs.
Deduction ranges from 50% to 100% depending on organization.

8. Section 10(14) – Special Allowances

Telephone reimbursement, uniform allowance, and other reimbursements can be exempt when paid by employer.

Case Study: Salary of ₹12 Lakh in 2025

80C exhausted with PPF + ELSS = ₹1.5 lakh
Additional NPS deduction (80CCD1B) = ₹50,000
Health Insurance (80D) = ₹25,000
Home Loan Interest (24b) = ₹2,00,000
HRA = ₹1,20,000
Donations under 80G = ₹30,000

Total Tax Saving = ₹4,25,000 beyond 80C

FAQs

1. How can I save tax beyond 80C in 2025?
You can save through NPS (80CCD1B), health insurance (80D), home loan interest (24b), HRA, and donations (80G).

2. Is NPS better than PPF for tax saving?
NPS offers extra ₹50,000 deduction and market-linked returns, while PPF is safer but capped under 80C.

3. Can salaried professionals claim both HRA and home loan benefits?
Yes, if conditions are met (e.g., house in different city, or loaned house not self-occupied).

4. Is health insurance premium tax-deductible?
Yes, up to ₹25,000 (self/family) and ₹50,000 (parents).

5. Are donations 100% deductible?
Yes, if made to specified funds like PM National Relief Fund; otherwise 50%.

Conclusion

In 2025, salaried professionals can save significant taxes even after exhausting 80C. By using deductions under 80D, 80CCD(1B), 24(b), HRA, LTA, and 80G, you can reduce taxable income and align savings with long-term financial goals.

Start planning today with our [Tax Calculator] and explore strategies in our [Tax Planning Guide] to make the most of your salary.