Tax Saving: Today in the era of inflation, the expenses of the common man have increased so much that his income is falling. He has to take the help of personal loan, credit card, debit card from banks to manage his expenses. Due to this, every second person starts thinking of saving tax from his income. If you are also thinking the same, then this news will prove to be very important for you. Let me tell you how you can save money through Tex.
Rebate of Rs.1.5 Lakh
You can get tax exemption up to Rs.1.5 Lakh under Tax Section 80C (Tax Saving 80c). If your limit is exhausted, then you have many other options, through which you can save tax on income. This includes options ranging from retirement planning to keeping the family safe and buying a home. Even lying in your account can save your money from tax.
People who do jobs can reduce their tax with House Rent Allowance. HRA employees are paid house rent from the company. Its deduction is available under section 80GG of the Income Tax Act. If you live in your parents’ house, you can also show them as tenants and take advantage of tax exemption.
If a loan is to be taken for higher education, then tax deduction is also available on the interest paid on its payment. Higher education includes studies after 12th. Tax exemption is available on the interest earned on the loan under section 80E. Keep in mind that these people have been taken from a recognized institution or bank and taken for themselves, children or spouse. This exemption can be availed for the immediately following assessment year and 7 assessment years thereafter or till the entire loan is repaid, whichever is earlier.
earnings from deposits
Under section 80TTB of Income Tax, interest earned on deposits is exempted from tax. The maximum limit under section 80TTB is Rs 50,000 per year. This section is available for senior citizens from 1st April 2018. However, deduction up to Rs.10,000 on interest earned on savings account under section 80TTA is not available to senior citizens.
National Pension Scheme
If you invest money in National Pension Scheme (NPS), then under section 80CCD(1B) you can take advantage of tax exemption up to Rs.50 thousand. Keep in mind that this deduction will be available under section 80CCD(1) after investment of up to Rs 1.5 lakh and the same deduction cannot be claimed under both the sections. That means you can save some extra money.
If you are below 60 years and you are paying health insurance premium, then you can take tax exemption up to Rs.25 thousand. Under this, you can pay the premium of your spouse and your children for yourself. This premium will be deducted under section 80D of the Income Tax Act. Those whose age is more than 60 years, they will get the benefit of tax up to Rs 50 thousand. If both the tax payer and his parent are above 60 years of age, then one can get the benefit of tax deduction up to Rs.1 lakh.
Expense on illness
In section 80DDB, the cost of treatment of a particular disease is also subject to tax exemption. This expenditure is incurred on the treatment of self, spouse, dependent parents or siblings. That disease should be covered under Rule 11DD of Income Tax Act. This deduction can be up to Rs 1 lakh for senior citizens. Whereas in other cases it can be maximum 40 thousand rupees.