Income Tax: Excellent news! In addition to Section 80C, there are several more ways you may reduce your income tax; see details here

Income Tax: Excellent news! In addition to Section 80C, there are several more ways you may reduce your income tax; see details here

Income Tax: Excellent news! In addition to Section 80C, there are several more ways you may reduce your income tax; see details here

Income Tax Saving: Although 80C is the most widely used method of avoiding income tax, most savings plans fall within its purview, and the exemption only applies up to Rs 1.5 lakh. However, there are many of these possibilities where you may invest and not lose a single cent.

Do you still need to save income tax? 

These three months have passed. Investing in them will not result in a tax deduction. There is only until March 31st to take advantage of tax advantages within a fiscal year. January has now officially begun. The final savings may protect you from a tax deduction in this scenario. When one thinks about income tax savings, Section 80C usually comes to mind first. However, excluding 80C, there are ten more choices where investing would result in no tax deduction all.

In this manner, taxes will be reduced.

80C is the most widely used method of avoiding income tax, however it only exempts up to Rs 1.5 lakh and most savings plans fall within its purview. However, there are other choices whereby no money will be withheld from your investment, or if it is, you will get a refund.

1) The NPS, or National Pension System

Under Section 80C of the National Pension System (NPS), you may save up to Rs 1.5 lakh in taxes; however, Section 80CCD (1B) allows you to save an extra Rs 50,000. This implies that you might save a total of Rs 2 lakh.

2) 80D Health Insurance

Section 80D allows you to claim health insurance premiums. The number of beneficiaries and their age under 80D will determine the amount of tax exemption you are eligible for. You may deduct up to Rs 25,000, Rs 50,000, and Rs 1 lakh in taxes in this manner.

3) 80E Education Loan

You are eligible to get a tax exemption on any loans you have taken out for your children's education. You may get tax exemption on the interest component of your school loan under Section 80E. Depending on who is repaying the loan, either the parent or the kid may benefit from this tax exemption. You may claim tax exemption on interest as much as you'd like; there is no limit on this.

Section 24: Interest on Home Loans

There are two methods to obtain a tax exemption on house loan payments. In addition to the Rs 1.5 lakh tax exemption on the original amount under Section 80C, you are also eligible for Section 24 tax exemption on the interest component. You are eligible for tax exemption under this provision up to a total of Rs 2 lakh. as long as you live there and the property is registered in your name. There is no limit on the amount of tax exemption you may claim if you rent the property but do not live there. This means that whatever interest you pay during the year is included in the tax exemption.

5) Purchaser of First Home (80EE)

For individuals purchasing their first home, the government offers an extra Section 80EE interest refund on home loans, provided that they haven't previously owned another property. You may claim extra tax under this provision up to Rs 50,000. This exception supersedes the exemption granted under Section 24. This implies that the annual rebate on home loan interest alone for first-time home buyers is at least Rs 2.5 lakh. This is contingent upon the property's price being less than Rs 50 lakh and the loan amount being less than Rs 35 lakh.

6) HRA (80g)

Rent is tax-exempt if you are employed and your employer offers HRA. However, you are unable to claim a tax exemption on your housing rent if you do not get HRA. This is what occurs when you work for yourself or in the unorganized sector. The government offers Section 80GG as a choice to such individuals.

7) Bank Interest on Savings (80TTA)

Additionally, interest earned from savings bank accounts is free from taxes. 80TTA SectionAny person or HUF is eligible for tax exemption under this, up to a maximum of Rs 10,000. This includes savings accounts at banks, co-ops, or post offices. Being a senior citizen is not a requirement for this tax exemption; it is available to everyone. Any interest that exceeds Rs 10,000 will be classified as other income and will be subject to taxation.

8) Medical Expenses for Disability (80DD)

If you provide care for a handicapped person, you may be allowed to claim section 80DD charges. That impaired individual might be any family member, such as a parent, kid or sibling. How much tax exemption you will obtain depends on the impairment of the impaired individual. The tax exemption in this varies from Rs 75,000 to Rs 1.25 lakh.

9) Treatment of particular illness (80DDB)

Treatment of serious disorders like cancer, neurological problems or AIDS is exceedingly costly. The government offers tax exemption up to Rs 40,000 under section 80DDB. In case of elderly folks, this tax exemption is Rs 1 lakh.

10) Daan (80 grams)

You may also avoid taxes on this if you donate to charities. A donation given to an approved charity organization may be free from taxes under Section 80G. All of the gift, however, is not exempt.