• Income Tax Calculator: In the National Pension System (NPS) scheme, an earning individual is given an additional ₹50,000 tax deduction under section 80CCD(1B).
Income Tax Calculator: After the announcement of budget proposal for FY 2023-24, middle class salaried and other earning individuals are busy calculating their tax saving options which they can use to save more than ₹7 lakh annual limit. Can do for. However, these benefits will be applicable only under the old income tax regime and those who wish to claim these benefits need to opt for the old tax regime because from April 1, 2023, the new income tax regime will be the default tax regime for an individual earning .
Here we list down the top 5 tax saving options available apart from section 80C of the Income Tax Act:
1] NPS: In the National Pension System (NPS) scheme, an earning individual is given an additional ₹50,000 tax deduction under section 80CCD(1B). Therefore, if an earning individual has exhausted his investment limit of ₹1.50 lakh per annum, he can claim income tax exemption on his investment in NPS account under this section. In this section, a person can claim tax exemption on investments up to ₹50,000 in a financial year.
2] Health insurance premium: Under section 80D of the Income Tax Act, a taxpayer can claim tax exemption on the premium paid on health insurance during the assessment cycle. The exemption ranges from ₹25,000 to ₹1 lakh in a financial year. A taxpayer can claim tax exemption on health insurance premium paid up to ₹ 25,000 if he is below 60 years of age. If the taxpayer is paying health insurance premium for his/her parents, whose age is less than 60 years, then the taxpayer can claim additional tax exemption on health insurance up to ₹ 25,000 paid for the parents. Could
In case the parents are senior citizens, in that case the amount limit goes up to ₹50,000 per annum. However, in both the cases, both the parent and the child cannot claim tax exemption on the same health insurance premium. However, if the taxpayer is a senior citizen, the annual limit of ₹25,000 goes up to ₹1 lakh in that case. Therefore, if a taxpayer is a senior citizen and is paying health insurance premium for his parents as well, in that case the taxpayer can claim deduction up to ₹ 1 lakh (₹ 50,000 for self and ₹ 50,000 for parents) Can claim tax exemption. ) under section 80D.
3] Tax exemption on home loan: A taxpayer who is paying home loan EMI can claim tax exemption on home loan interest paid up to ₹2 lakh in the assessment cycle. However, the home loan borrower must be living in the unit or the unit must be self-occupied.
4] Interest on savings account deposits: Under section 80TTA, a savings account depositor can claim TDS exemption on interest up to ₹10,000 in a financial year. This amount is applicable to all bank savings accounts. Therefore, if one has more than one savings account, the taxpayer is advised to calculate the entire savings account interest of all the bank accounts. In case of senior citizens, the non-taxable limit under section 80TTB is ₹50,000.
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