This is the time when people also start investing in many investment tools in order to save tax. Under Section 80C of the Income Tax Act, you get Tax Deduction (Tax Benefit under 80C) on giving proof of your many investments, there is an advantage of investing in such, but there are many taxpayers, who invest due to their economic status. If they are unable to do so, how can they save tax?

It is a matter of relief that such taxpayers Means of saving tax have also been found for them, in which they do not need to invest separately to save tax (How to save tax with zero investment). They can get tax exemption even by showing some of their expenses, that too in a legal way.

Where will the tax be saved without investment? (Tax Saving Tools)

1. HRA or House Rent Allowance (Tax Deduction on HRA)

If you live in a rented house, then you have the most primary tool to save tax. A part of your salary goes towards renting accommodation. You get tax exemption on HRA under Section 10(13A) of Rule 2A of the Income Tax Act, 1961. In tax deduction, HRA is partially as well as fully tax exempt.

2. Education Loan (Tax Deduction on Education Loan)

Although you do not get tax exemption on loan, but you get exemption on education loan. Education loan provides coverage for your higher education expenses and loan repayments. Under section 80E of the IT Act, you get tax exemption on the interest paid on education loan (tax deduction on education loan interest). That is, you can claim tax exemption on the amount spent from your pocket to repay the loan installments. When you claim a deduction on the total interest payable, the same amount is reduced from your overall gross income. It gets less.

3. Home Loan (Tax Deduction on Home Loan)

You also get tax deduction on housing loan. You have to repay the principal amount along with interest on your loan, that too within the end of the loan tenure. Under Section 24(b) of the Income Tax Act, if you are repaying the loan for the house in which you are living, you can get a tax exemption of up to Rs 2 lakh.

On the other hand, if you buy an under-construction house property, you can claim tax exemption on it only after the completion of the construction work. On the other hand, if you have bought a fully constructed house, then you can claim tax deduction on home loan repayment immediately on the interest paid on the housing loan.

4. Tax Deduction on Children’s Tuition Fees, Education Allowance, and Hostel Allowance

If you have children, who are studying, then you can also claim tax deduction on some of their education expenses. You can claim exemption on your child’s tuition fees, hostel expenses, education allowance. Under Section 10 of the IT Act, you get the option to claim them. Let us tell you that you can claim a rebate of Rs 1,200 per annum on the expenses of children and Rs 3,600 per annum on hostel expenses of maximum two children.

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1. LIC premium, PF, PPF, Pension Scheme 

You get all the tax exemptions under Section 80C of Income Tax. For example, if you have taken a policy of LIC, then you can claim its premium. You can get tax exemption under 80C on the principal of provident fund, PPF, children’s tuition fee, national savings certificate, home loan. If you have purchased an annuity plan (pension plan) of LIC or any other insurance company under section 80CCC, then you can claim tax exemption. If you have bought a pension scheme of the Central Government under section 80 CCD (1), then you can claim it. Remember that taking all these together the tax exemption cannot exceed Rs 1.5 lakh.

2. Claim on Principal Amount of Home Loan

You can avail tax exemption under section 80C on the principal payment of the home loan. However, this limit cannot exceed 1.5 lakhs. So, if your remaining deductions under 80C are less than 1.5 lakhs, then you can claim tax deduction by meeting this limit from the principal amount of the home loan.

3. Tax Deduction on Home Loan Interest 

If you have taken a home loan, you get tax exemption on the interest paid under section 24(b) of Income Tax. According to Income Tax rules, you can get tax exemption on interest payment up to 2 lakhs. This tax exemption will be available only if the property is ‘self-occupied’.

4. Central Government Pension Scheme 

If you invest in the National Payment System (NPS), a central government pension scheme, then you get an additional exemption of Rs 50,000 under section 80 CCD (1B). This exemption
is on top of the tax exemption of Rs 1.5 lakh availed under section 80 (C). The contribution made by the employer to the pension scheme of the Central Government can be claimed under section 80 CCD2. It has two conditions. First, whether the employer is a Public Sector Unit (PSU), state government or any other, the deduction limit is 10 percent of the salary. If the employer is the Central Government, then the deduction limit will be 14% of the salary.

5. Health Insurance Premium

If you have taken any health insurance or get regular health checkup, then you can claim the premium under section 80D. Although its limit is fixed. If you have taken a health insurance policy for yourself, spouse, children and parents, you can claim a premium of up to Rs 25,000. In this case the age of the parents is less than 60 years. If your parents are senior citizens, then the tax exemption limit will be Rs 50,000. Health checkup of Rs 5000 is also available in this. However, the tax deduction cannot exceed the premium of health insurance.

The post Income Tax Deductions Update: Tax payers can save up to Rs 8 lakh in income tax! Know here 10 ways first appeared on Rightsofemployees.com.

1. LIC premium, PF, PPF, Pension Scheme 

You get all the tax exemptions under Section 80C of Income Tax. For example, if you have taken a policy of LIC, then you can claim its premium. You can get tax exemption under 80C on the principal of provident fund, PPF, children’s tuition fee, national savings certificate, home loan. If you have purchased an annuity plan (pension plan) of LIC or any other insurance company under section 80CCC, then you can claim tax exemption. If you have bought a pension scheme of the Central Government under section 80 CCD (1), then you can claim it. Remember that taking all these together the tax exemption cannot exceed Rs 1.5 lakh.

2. Claim on Principal Amount of Home Loan

You can avail tax exemption under section 80C on the principal payment of the home loan. However, this limit cannot exceed 1.5 lakhs. So, if your remaining deductions under 80C are less than 1.5 lakhs, then you can claim tax deduction by meeting this limit from the principal amount of the home loan.

3. Tax Deduction on Home Loan Interest 

If you have taken a home loan, you get tax exemption on the interest paid under section 24(b) of Income Tax. According to Income Tax rules, you can get tax exemption on interest payment up to 2 lakhs. This tax exemption will be available only if the property is ‘self-occupied’.

4. Central Government Pension Scheme 

If you invest in the National Payment System (NPS), a central government pension scheme, then you get an additional exemption of Rs 50,000 under section 80 CCD (1B). This exemption
is on top of the tax exemption of Rs 1.5 lakh availed under section 80 (C). The contribution made by the employer to the pension scheme of the Central Government can be claimed under section 80 CCD2. It has two conditions. First, whether the employer is a Public Sector Unit (PSU), state government or any other, the deduction limit is 10 percent of the salary. If the employer is the Central Government, then the deduction limit will be 14% of the salary.

5. Health Insurance Premium

If you have taken any health insurance or get regular health checkup, then you can claim the premium under section 80D. Although its limit is fixed. If you have taken a health insurance policy for yourself, spouse, children and parents, you can claim a premium of up to Rs 25,000. In this case the age of the parents is less than 60 years. If your parents are senior citizens, then the tax exemption limit will be Rs 50,000. Health checkup of Rs 5000 is also available in this. However, the tax deduction cannot exceed the premium of health insurance.

The post Income Tax Deductions: Tax payers can save up to Rs 8 lakh in income tax! Know here 10 ways first appeared on Rightsofemployees.com.

1. LIC premium, PF, PPF, Pension Scheme 

You get all the tax exemptions under Section 80C of Income Tax. For example, if you have taken a policy of LIC, then you can claim its premium. You can get tax exemption under 80C on the principal of provident fund, PPF, children’s tuition fee, national savings certificate, home loan. If you have purchased an annuity plan (pension plan) of LIC or any other insurance company under section 80CCC, then you can claim tax exemption. If you have bought a pension scheme of the Central Government under section 80 CCD (1), then you can claim it. Remember that taking all these together the tax exemption cannot exceed Rs 1.5 lakh. 

2. Claim on Principal Amount of Home Loan

You can avail tax exemption under section 80C on the principal payment of the home loan. However, this limit cannot exceed 1.5 lakhs. So, if your remaining deductions under 80C are less than 1.5 lakhs, then you can claim tax deduction by meeting this limit from the principal amount of the home loan.

3. Tax Deduction on Home Loan Interest 

If you have taken a home loan, you get tax exemption on the interest paid under section 24(b) of Income Tax. According to Income Tax rules, you can get tax exemption on interest payment up to 2 lakhs. This tax exemption will be available only if the property is ‘self-occupied’.

4. Central Government Pension Scheme 

If you invest in the National Payment System (NPS), a central government pension scheme, then you get an additional exemption of Rs 50,000 under section 80 CCD (1B). This exemption 
is on top of the tax exemption of Rs 1.5 lakh availed under section 80 (C). The contribution made by the employer to the pension scheme of the Central Government can be claimed under section 80 CCD2. It has two conditions. First, whether the employer is a Public Sector Unit (PSU), state government or any other, the deduction limit is 10 percent of the salary. If the employer is the Central Government, then the deduction limit will be 14% of the salary. 

5. Health Insurance Premium

If you have taken any health insurance or get regular health checkup, then you can claim the premium under section 80D. Although its limit is fixed. If you have taken a health insurance policy for yourself, spouse, children and parents, you can claim a premium of up to Rs 25,000. In this case the age of the parents is less than 60 years. If your parents are senior citizens, then the tax exemption limit will be Rs 50,000. Health checkup of Rs 5000 is also available in this. However, the tax deduction cannot exceed the premium of health insurance. 

The post Income Tax Deductions: Tax payers can save up to Rs 8 lakh in income tax! Know here 10 ways first appeared on Rightsofemployees.com.