Income Tax Saving Tips: Monthly salary earners must pay tax on their income. There are various investment schemes available to reduce tax payments. With just 3 months left to invest for tax saving, Rs 1.5 lakh can be saved under Section 80C.
Let’s see what are the tax saving investment schemes. Health insurance premium can be tax exempted under section 80D. That means the coverage of the policy ranges from Rs 25,000 to Rs 1 lakh and the tax deductible amount depends on the age of the insured.
Education Loan (80E)
Repayment of education loan can avail tax deduction on interest paid under Section 80E. There is no upper limit on this education loan interest.
Home Loan Interest (Section 24)
There are two ways to get tax relief while repaying the home loan. Under Section 80C up to Rs 1.5 lakh principal amount and under Section 24 interest up to Rs 2 lakh can be availed.
First Time Home Buyers (80EE)
For first-time home buyers, an additional concession on home loan interest is provided under Income Tax Section 80EE, subject to specified property value and loan amount.
Section 80GG can claim tax exemption on rent if no house rent (HRA) is paid.
Savings Account Interest (80TTA)
Under Section 80TTA of Income Tax, individuals are eligible to claim tax deduction on savings account interest up to a maximum of Rs.10,000.
Medical Expenses (80DD)
An income tax payer can claim tax deduction under section 80DD for the medical expenses of a differently abled person.
Specific Disease Treatment (80DDB)
Treatment expenses for high-risk, high-cost diseases including cancer and neurological diseases can be deducted up to Rs 40,000 under Income Tax Section 80DDB.
Charitable donations are tax deductible under Section 80G even though the entire donation amount is not eligible.