Every January to March, millions of Indian IT employees scramble to submit investment proofs to HR. Most end up making last-minute decisions — buying LIC policies they do not need or dumping money into FDs that barely beat inflation — just to show something on paper. This guide is what you should read in April, not March: a complete map of every legitimate deduction available to salaried employees, how much each one saves, and exactly which ones to use based on your salary bracket.
New regime vs old regime — choose correctly before reading further
Most deductions in this article apply only under the <strong>old tax regime</strong>. Under the new regime (default from FY 2023-24), almost all deductions are gone — but tax rates are lower. You must choose your regime at the start of the financial year. If you have significant deductions (home loan, heavy 80C), old regime often saves more. If you have minimal deductions, new regime is simpler and often better. We cover both.
