Income Tax Return: Save Income Tax Without Any Investment: To save tax, most people invest money in NPS, PPF, SSY, NSC, LIC. There are some provisions in the Income Tax Act which help in saving tax without investing in any tax saving scheme.
Income Tax Return: People who are employed and fall under the income tax slab are required to file Income Tax Return. The deadline for filing ITR is 31 July 2024.
If you are a taxpayer and are going to file income tax return, then we are telling you how you can save tax by investing money in National Pension System (NPS), Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), NSC or LIC.
1. Children’s tuition fees
If you are paying your children’s tuition fees, then you can avail tax exemption under section 80C of the Income Tax Act. A deduction of up to Rs 1.50 lakh is allowed on tuition fees paid to any university, college, school or other educational institution.
This deduction is available for full time education of maximum two children. If your child is studying in play-school, pre-nursery and nursery class and you are paying its fees, then you can avail tax benefits. You should know that this tax exemption on tuition fees will be available only if you choose the old tax regime.
2. Education loan
You can also avail tax saving benefits on education loan without investing anywhere. Under Section 80E of the Income Tax Act, you can get tax exemption on the interest paid on education loan taken from a financial institution. You can get this deduction for a period of eight years without any limit.
3. Home loan
If you have taken a home loan, then you can also get tax exemption on it. This exemption is available under Section 24 (B) of the Income Tax Act. You can claim a deduction of up to two lakh rupees every financial year on your own residential property. Apart from this, you can also claim deduction under section 80C on the amount paid for home loan amount.
You can also avail this benefit only under the old tax regime. Taxpayers can claim a total deduction of Rs 3.5 lakh for interest on home loan if they fulfill the conditions of section 80EEA. If the conditions specified in section 80EE are met, you can claim a total deduction of Rs 2.5 lakh.
4. Rent payment
If you live in a rented house, you can claim tax deduction on the amount of rent paid under section 10 of the Income Tax Act. The maximum deduction limit is decided on the basis of your salary and city of residence.
5. You can save tax by donating
You can also avoid paying tax by donating. Under Section 80G of the Income Tax Act, many individuals can claim tax deduction for donations made to approved organizations. The deduction can be 50% or 100% of the donation, depending on the applicable conditions. You should know that to claim the deduction, information such as the recipient’s name, PAN, address and donation amount has to be given while filing the income tax return.
6. Medical insurance premium
You can get tax exemption on medical insurance premium under Section 80D of the Income Tax Act. In this, you can claim deduction for the premium paid for medical insurance policies for yourself, wife, child and parents. The maximum deduction limit varies depending on the age of the insured person and the type of policy.
If you and your parents are less than 65 years of age, then you will get tax exemption on premium up to Rs 25 thousand on health insurance. If your parents are above 65 years of age, you can get tax exemption up to Rs 50,000. You can also get tax exemption on your parents’ medical expenses under section 80D. For this, it is only necessary that your parents’ age is 60 years or more. Under this, you can get tax exemption on a maximum of Rs 50,000.
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