Every employed person is busy trying to save tax. He had expected a cut in the tax slab from Finance Minister Nirmala Sitharaman in the interim budget. However, there is still no need to be disappointed. There are many ways through which you can save tax. Let us know about it in detail.
Every employed person wants to save tax. This is the reason why they keep an eye on the change in tax slabs in the budget. The interim budget was no different. People were hopeful that Finance Minister Nirmala Sitharaman would give them some relief in this. It is a different matter that nothing like this happened. He did not make any changes in the tax slabs in the interim budget 2024. However, you do not need to be disappointed by this. Here we are telling you about 10 such methods with the help of which you can easily save a good amount of tax. This is for both government and private employees. Apart from this, their benefits are available in both old and new tax regime.
Section 80C: This is an important provision in the Income Tax Act, 1961. It allows individuals and Hindu undivided families (HUFs) to avail tax deductions on certain types of investments and expenses. This helps the taxpayer to reduce his taxable income. The maximum limit of deduction under section 80C is Rs 1,50,000.
What are the major deductions included under Section 80C?
Life Insurance Premium: You can claim tax deduction for the premiums paid for your life insurance policy and the life insurance policies of your dependents.
Pension Scheme Contribution:
You can claim deduction on contributions made to National Pension Scheme (NPS), Atal Pension Yojana (APY), Public Provident Fund (PPF), and other pension schemes.
- ELSS Mutual Funds: You can claim deduction on investments made in Equity Linked Savings Scheme (ELSS).
- Tuition Fees: You can claim deduction on children’s school or college tuition fees.
- Home Loan Interest: You can claim deduction on the interest paid on your home loan.
- Stamp duty and registration fees: You can claim deduction on stamp duty and registration fees paid while purchasing a house.
Section 80 CCD(1B): This is an additional deduction under Section 80 CCD(1) of the Income Tax Act, 1961. This deduction is available to those individuals who contribute to the National Pension Scheme (NPS). Under this section, an individual can claim an additional deduction of up to Rs 50,000 on contributions made to the NPS Tier I account. This deduction is in addition to the deduction limit of Rs 1,50,000 available under section 80C.
