Income tax filing is something that most people do once a year to get it done. What if, though, your tax return could help you save more cash? The truth is that you can lower your tax bill and save more money by knowing about and claiming the right tax deductions. Sometimes you can save thousands of rupees! This article will make it easy for you to understand the main tax breaks, how to file your ITR, and how online tax filing can improve the whole process in 2025.
Why turning in your income tax is important for your savings
It’s not enough to just follow the law when you file your taxes. You can get refunds, get help from the government, and make the most of every rupee you earn. If you file your income taxes correctly, you won’t have to pay more tax than you need to, and the tax office won’t be able to look over your return and punish you.
You can now easily file your taxes online, which was not possible before. You can get step-by-step help, file from home, and keep track of your refund in less time than it takes to drink your coffee in the morning.
How to Start: What You Need to File an ITR
Before you start filing your ITR, make sure you have these important things ready:
- ID cards and PAN cards
- Form 16 (for people who get paid a salary)
- Bills from banks
- A record of your investments (PF, PPF, ELSS, insurance, etc.)
- Statements for home loans
- Proof of rent (if you want to claim HRA)
- Information about other income, like interest, capital gains, and freelance earnings
- Tax returns from the previous year (if you have them)
If you have these things ready, filing your taxes online will go quickly and without any problems.
The key to bigger savings is to understand tax deductions.
A tax deduction is a certain amount that you can take out of your total income before you figure out your taxes. You pay less tax if you claim more deductions. It’s important to note that deductions are not the same as exemptions (which don’t tax some income at all) or credits (which directly lower your tax bill).
You can get deductions whether you file your tax return online or on paper, but most people find it easier and faster to do it online.
The best tax breaks you can’t miss in 2025
Let’s take a look at the most common and useful tax breaks that people can get in India for 2025.
1. Section 80C: The Superstar Tax Break
Under Section 80C, you can get up to ₹1.5 lakh back for investments and costs like
- Pension Plan for Workers (EPF)
- Fund for the Public Provident Fund
- Funds that invest in the Equity Linked Savings Scheme (ELSS)
- Costs of life insurance
- Payment of the loan’s principal
- Costs of school for kids
- Certificate of Savings from the Government
- Money saved in banks or the post office for five years
Tip: Plan your investments early in the year to get the most tax breaks and avoid having to rush to file your ITR at the last minute.
2. Section 80D: Premiums for health insurance
If you, your spouse, and your children all had health insurance, you can get up to ₹25,000 back. You get an extra ₹25,000 (₹50,000 if they are senior citizens) if you cover your parents.
3. Section 24(b): Interest on a home loan
You can get up to ₹2 lakh a year back for the interest you pay on a home loan that you live in yourself. Along with the principal repayment required by Section 80C, this is also being paid.
4. Allowance for House Rent
If you rent your home and get HRA as part of your pay, you can get a tax break based on your rent, salary, and city where you live. When you file your taxes online, keep your rent receipts and your landlord’s PAN on hand.
5. Section 80E: Interest on Education Loans
You can deduct all interest paid on education loans for up to eight years after the year you start paying them back, whether you are in India or another country.
6. Sections 80TTA and 80TTB: Interest on savings accounts
You can deduct up to ₹10,000 (₹50,000 if you are a senior citizen) in interest from savings accounts.
7. Section 80G: Giving to charity
You can deduct up to 100% or 50% of the amount you donate to certain charities and relief funds, depending on the organization.
8. Part 80CCD(1B): The National Pension System
You can deduct an extra ₹50,000 for putting money into the NPS on top of the ₹1.5 lakh that you can deduct under Section 80C.
9. Regular Tax Deduction
People who get a salary or a pension can get a flat ₹50,000 deduction without having to fill out any paperwork.
10. Other Tax Breaks
- Section 80U: For people with disabilities, Section 80U
- Section 80DD/80DDB: For medical care of dependents who have certain diseases or disabilities
- Section 80EE/80EEA: First-time homebuyers can get an extra tax break
How to File an ITR and Get Deductions
It’s easy to claim deductions if you follow these steps, whether you use Online Tax Filing or a tax pro:
- If you make a salary, use Form ITR-1. If you make money from a business or capital gains, use Form ITR-2 or ITR-3.
- Type in the details of your investment: For each deduction, you need to put the amount you invested or spent in the right box.
- Upload Proofs: In case the tax office asks for proof, keep digital copies of receipts, certificates, and statements.
- Look over and send: Before you send in your Tax Return online, make sure you’ve read everything twice.
- E-Verify: Finish the e-verification step to file your ITR and get your refund faster.
Pros of Filing Your Taxes Online
Most people today prefer to file their taxes online, and there’s a good reason for that:
- Easy: You can file from home at any time.
- Speed: Returns are handled more quickly, which means refunds are given more quickly.
- Help: Most platforms will walk you through deductions and help you stay away from making mistakes.
- Keeping records: Your paperwork and tax returns are kept safely so you can use them again in the future.
- Value for money: It’s usually less expensive than hiring a professional.
Important Dates to Remember When Filing Your 2025 Income Tax
- People who are salaried and cases that aren’t audited: July 31, 2025
- Companies that need to be audited: October 31, 2025
- Cases about transfer pricing: November 30, 2025
- Return late or changed: December 31, 2025
You can avoid late fees, interest, and scrutiny notices if you file your tax return on time. Write these dates down on your calendar and begin filing your ITR early!
What Not to Do When Filing an ITR
- Not taking advantage of tax breaks
- Putting in the wrong PAN, Aadhaar, or bank information
- Not e-verifying your tax return
- Leaving behind receipts or proofs for deductions claimed
- Putting off filing until the last minute
How to Get the Most Out of Your Tax Savings Plan by Investing Early:
Don’t wait until March to put money away so that you can deduct it.
When you file your taxes online, the software will often show you deductions that you might have missed.
Make sure you have all of your documents ready. This will make filing your ITR easy and stress-free.
If you need to, talk to a tax expert.
Even more so if you have more than one way to make money or complicated investments.
Put your income tax filing to work for you.
Not only is it the law that you file your taxes, but it’s also a great chance to save money. To lower your tax bill and get more money back, you need to know about and claim the right tax deductions. They are easy to get with online tax filing, so you shouldn’t miss out on them. In 2025, use your tax return to help your money grow. Start early and stay organized.
*****
Contact Us:
Call us at +91 84480 94507 or email us at [email protected] for any queries.
Choose Click To Professional—Your Partner in Business Success.
Author Bio
