Income tax calculator: Top 5 tax saving choices aside from Section 80C profit

Income tax calculator: After the announcement of funds proposal for FY2023-24, center class salaries and different incomes people are busy calculating their tax saving choices, which they’ll train to avoid wasting past ₹7 lakh annual restrict. However, these advantages could be relevant solely below outdated revenue tax regime and those that wish to declare these advantages want to decide on outdated tax regime as a result of from 1st April 2023, new revenue tax regime could be the by default tax regime for an incomes particular person.

Here we record out prime 5 tax saving choices which might be obtainable past Section 80C of the revenue tax act:

1] NPS: In National Pension System (NPS) scheme, an incomes particular person is given an extra ₹50,000 tax deduction below Section 80CCD (1B). So, if an incomes particular person has exhausted its ₹1.50 lakh every year funding restrict, she or he can declare revenue tax rebate on one’s funding in NPS account below this part. In this part , one can declare tax exemption on as much as ₹50,000 funding in a single monetary yr.

2] Health insurance coverage premium: Under Section 80D of the revenue tax act, a taxpayer can declare tax rebate on premium paid on medical health insurance throughout the evaluation cycle. The rebate ranges from ₹25,000 to ₹1 lakh in a single monetary yr. A taxpayer can declare tax rebate on the medical health insurance premium paid as much as ₹25,000 if she or he is under 60 years of age. If the taxpayer is paying medical health insurance premium of its dad and mom, who’re under 60 years of age, then in that case the taxpayer can declare an extra tax rebate on as much as ₹25,000 medical health insurance paid for is dad and mom.

In case of oldsters being senior residents, then in that case this quantity restrict goes as much as ₹50,000 every year. However, in each instances each dad and mom and youngster cannot declare tax rebate on similar medical health insurance premium. However, if the taxpayer is a senior citizen, then in that case ₹25,000 annual restrict goes as much as ₹1 lakh. Hence, if a taxpayer is senior citizen and it’s paying medical health insurance premium for its dad and mom as properly, then in that case the taxpayer would be capable of declare tax rebate on as much as ₹1 lakh ( ₹50,000 for himself and ₹50,000 for fogeys) below Section 80D.

3] Tax rebate on house mortgage: A tax payers who’s paying house mortgage EMI, she or he can declare tax rebate on as much as ₹2 lakh house mortgage curiosity paid within the evaluation cycle. However, the house mortgage borrower needs to be residing within the unit or the unit needs to be self occupied.

4] Interest on financial savings account deposits: Under Section 80TTA, a financial savings account depositor can declare TDS exemption on as much as ₹10,000 curiosity incurred in single monetary yr. This quantity is relevant on all financial institution financial savings account. So, if some one has a couple of financial savings account, then the taxpayer is suggested to calculate complete financial savings account curiosity of all financial institution accounts. In case of senior residents, the non taxable restrict is ₹50,000 below Section 80TTB.

5] Donations to charitable establishments: Under Section 80CCC, if a taxpayer has paid donation to an authorised charitable establishment, then in that case one can declare tax exemption below Section 80CCC. However, in case of donation in money, the restrict is capped at ₹2,000. So, in case of donation exceeding ₹2,000, one ought to pay through financial institution cheque. But, solely paying via cheque will not work as you want stamped receipt of donation by the belief with point out of its deal with, PAN card with title of the belief written on it.

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