Income Tax Season: It is the season of Income Tax Return (ITR Filing). If tax is deducted then it is time for refund, if not saved then only the last time will be left. In such a situation, tax can be saved even at the last time. Usually, in the name of income tax savings, the first thing that comes to mind is section 80C. But, the limit in this is a little less, so forget 80C and move ahead and look for these 10 options. Not a single penny of yours will be deducted in tax. Let’s know how.
This is how you will save tax
The most popular way to save income tax is 80C, but most savings schemes come under its purview and the exemption is only up to Rs 1.5 lakh. But, there are many such options in which if you invest, not a single penny will be deducted and if it is deducted, then a refund will definitely come.
National Pension System (NPS)
In the National Pension System (NPS), you can save tax of Rs 1.5 lakh under section 80C, but above this, an additional saving of Rs 50,000 can be done under section 80CCD (1B). That means you can save up to Rs 2 lakh in total
Health Insurance (80D)
Under section 80D, you can claim health insurance premium. How much tax exemption you will get under 80D depends on who is covered under this policy and what is their age. In this way, you can claim tax savings of up to Rs 25,000, Rs 50,000 and Rs 1 lakh.
Education Loan (80E)
If you have taken a loan for your children’s education, you can claim tax exemption on its repayment. Under section 80E, you can get tax exemption on the interest portion of the education loan. This tax exemption can be availed by either the parents or the child, it will be decided on who is repaying the loan. There is no limit on tax exemption in this, you can claim tax exemption on as much interest as you want.
Home loan interest (section 24)
You can claim tax exemption on home loan repayment in two ways. You can get tax exemption of Rs 1.5 lakh on the principal amount under 80C, and you can also get exemption on the interest component under section 24. Under this section, you can get a maximum tax exemption of Rs 2 lakh, provided the property is in your name and you live in it. If you do not live in that house but have given it on rent, then there is no limit to claim tax exemption, that is, whatever interest you have paid during a year will come under the purview of tax exemption.
On buying a house for the first time (80EE)
The government gives additional exemption on home loan interest to those who buy their first home under section 80EE, provided you do not have any other house in your name before this. Under this section, you can claim additional tax up to Rs 50,000. This exemption is in addition to the exemption available under section 24. That is, first time home buyers get a deduction of at least Rs 2.5 lakh in a year on home loan interest. The condition for this is also that the price of the property should be less than Rs 50 lakh and the loan should be Rs 35 lakh or less.
HRA (80GG)
If you are salaried and your company gives HRA, then you get tax exemption on rent. But if you do not get HRA, then you cannot claim tax exemption on house rent. This happens when you either work in the unorganized sector or do some work on your own. For such people, the government gives the option of section 80GG.
Saving Bank Interest (80TTA)
You can also get tax exemption on the interest earned from savings bank account. Under section 80TTA, any individual or HUF can get tax exemption up to Rs 10,000. This includes bank, co-operative society or post office savings account. This tax exemption is for everyone, there is no condition of being a senior citizen for this. Interest more than Rs 10,000 will be counted in the category of other income and tax will have to be paid on it.
Disabled Medical Expenses (80DD)
If you take care of a disabled person, you can claim the expenses incurred on him under section 80DD. That disabled person can be any member of the family, such as parents, children or siblings. How much tax exemption you will get depends on the disability of the disabled person. In this, tax exemption ranges from Rs 75,000 to Rs 1.25 lakh.
Treatment of special disease (80DDB)
Treatment of certain diseases like cancer, neurological disease or AIDS is very expensive. The government provides tax exemption of up to Rs 40,000 under section 80DDB. In case of senior citizens, this tax exemption is Rs 1 lakh.
Donation (80G)
If you do charity, you can save tax on it as well. Donation made to a recognized charitable institution under section 80G comes under the purview of tax exemption. However, exemption is not available on the entire donation.
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