ITR Filing: You can save tax even while filing ITR, know here how – how can you save tax while filing income tax return
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Tax exemption in 80C
Section 80C of the Income Tax Act provides tax exemption on many investment options. These investment options include EPF, PPF, Sukanya Samriddhi Yojana, NSC, Tax Saving Mutual Fund (ELSS) and Tax Saving FD etc. You can avail income tax exemption under section 80C on the savings made through these investment options. Similarly, you can get income tax exemption on a total investment of up to Rs 1.5 lakh by including many other options including premium for life insurance etc. Apart from this, you can claim income tax exemption under Section 80C on only tuition fees for the education of two children, part of the principal amount included in the home loan installment, stamp duty and registration charges for the purchase of a house, etc.
home loan
If your salary includes House Rent Allowance (HRA) component and you had not submitted the required documents to your employer to claim tax deduction on it, there is still time to claim this exemption. Now when you are filing income tax return, you can claim tax deduction on HRA. HRA is tax exempt under section 10(13A) of Income Tax. Salary that determines HRA includes basic salary, dearness allowance and commission. One of its important conditions is that you are paying the rent for the house you live in. Tax exemption will be available only on such rent.
investment in nps
NPS account holder gets income tax exemption of up to Rs 1.5 lakh under Section 80C and additional Rs 50,000 under Section 80CCD. However, tax liability is made on the income from annuity. Your slab will be determined by adding this income to all your other earnings and income tax will have to be paid accordingly. Whereas in NPS’s Tier-1 account, both contributions and withdrawals will be taxed. Benefits of exemption are available.In such a situation, the account holders will also get this benefit.
health insurance
Health insurance premium is tax exempted under section 80D of the Income Tax Act. The benefit of this exemption is available on the premium paid for the health policy taken for self, children or parents. But did you know that there is another way that you can save tax and it has nothing to do with the premium payment for your health insurance policy. This deduction can be claimed under section 80DDB. The Section 80D deduction is also applicable on mediclaims taken in the name of any of your family members. Under section 80D, an individual can claim a tax deduction amounting to Rs 25,000 on insurance for himself, a spouse or dependent children. If the individual or spouse is a senior citizen, the deduction amount is capped at Rs.50,000.
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