Income Tax Saving Through Expenses: With the beginning of April, we have entered the new financial year. According to experts, any taxpayer should start planning tax saving with the beginning of the new financial year so that wrong decisions can be avoided at the last moment. This is important for those taxpayers who have opted for the old tax regime. All the options to save income tax are available in the market. These include options available under Section 80C such as tax saving schemes of mutual funds (ELSS), Public Provident Fund (PPF), life insurance, tax saving fixed deposits of banks etc. These are all savings options. However, if you want, you can save a lot in income tax through some necessary expenses. Today we will tell you that by spending on which important items you can save income tax.
Deduction is available on children’s tuition fees
If you have chosen the old tax regime and are thinking of investing somewhere for tax saving, then do not forget that even on payment of tuition fees of the private schools in which you are teaching your children, income tax is deducted under section 80C. The benefit of deduction is available. So consider this expense before saving. Calculate how much is less than the limit of Rs 1.5 lakh under Section 80C. You can invest the remaining money in other investments.
Avail deduction of up to Rs 1,00,000 on paying health insurance premium
Due to the changing lifestyle and changes in the environment, hardly anyone is lucky who does not need any medicine. Along with aging, health issues start coming to the fore. On the other hand, on an annual basis, the cost of healthcare and hospitalization is increasing exponentially. You must have adequate health insurance cover to get the benefit of income tax deduction. You may have got this facility from the company, but it is necessary to take your own health insurance policy. In the event of leaving the job or leaving the company, the health insurance provided by the company ceases immediately. Now the question arises that how much deduction can be availed on health insurance premium? A person can get the benefit of deduction up to Rs 25000 by taking health insurance for his family. If the age of the parents is less than 60 years, then by taking health insurance for them, you can get the benefit of additional deduction of Rs 25000. If the age of the parents is more than 60 years, then the deduction benefit becomes Rs.50,000. If both you and your parents are above 60 years of age, then you can get the benefit of deduction up to a maximum of Rs 1,00,000 in income tax.
The benefit of deduction is also available on the expenses incurred on the treatment of serious diseases.
If a member of your financially dependent family is suffering from a serious illness, then you can claim the expenses for his treatment under Section 80DDB of the Income Tax Act. This deduction can be claimed for the spouse, children, parents or siblings. Only resident Indians can claim tax deduction under this section. You can claim the actual cost of treatment or Rs.40,000, whichever is less. The limit of expenditure on the treatment of serious diseases of senior citizens is Rs 10,00,000 and for elderly people above 80 years of age, its limit is Rs one lakh.