Earning ₹20 Lakh+? Smart Ways to Reduce Your Tax Before March 31!

High-income earners are hit the hardest by tax. But even at ₹20–30 lakh+ annual salary, you can still save ₹2–3 lakh in taxes legally — if you act smart with these Smart Ways to Reduce Your Tax Before March 31.

Here’s your complete cheat sheet.
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1. Max Out 80C (₹1.5Lakh)

Use this limit fully through:

EPF/VPF

ELSS mutual funds

PPF

Children’s tuition fees

Life insurance premium
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2. Claim Extra ₹50,000 Under NPS (80CCD(1B))

Just open an NPS account (if you don’t have one)

Invest ₹50K before March 31

Helps reduce tax by up to ₹15,600 instantly



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3. HRA + Home Loan = Huge Deductions

Claim HRA if you live in a rented house

Also claim ₹2L interest under Section 24(b) if you have a home loan

Even better if you’re repaying a joint loan with spouse — both can claim!

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4. Deduct Health Expenses & Insurance (80D)

₹25,000 for self/family

₹50,000 for senior citizen parents

₹75,000 total deduction possible

5. Opt for Presumptive Income (if freelancing on side)

If you freelance or consult in addition to salary

Use Section 44ADA to declare 50% as profit — and save big on tax

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Pro Tip:
If you’re planning bonus deferment, talk to HR to shift bonus to April — it reduces this year’s tax slab burden.

Deferring Bonus to Next Year: How Employees Can Save Big on Taxes (2025 Update) – StoxN Tax