Few Ways To Save Income Tax Without Investing Photo Loan: Thinkstock
Until the final date, March 31, 2021, for investing in the 2020-21 fiscal year for tax deduction rates, many are striving to do so. There are still a few days left, if you haven’t been able to do this now, it’s time.
However, you can’t go over budget when planning your taxes, and borrowing to save taxes is a strict no.
Taxpayers’ capacity to save has also been hampered by wage cuts and job losses, leading to a reduction in the capacity to save or invest, and hence tax planning.
Despite all of these factors, taxpayers can still request deductions from some of the expenses they incur.
There are certain charges that can be claimed as incurred without the need to make any additional investments under Section 80C for withholding tax.
Tuition Fee: Those who have expenses related to children’s tuition fees are eligible up to Rs 1.5 lakh incurred under Section 80C of the Income Tax Act. This means that if one parent pays Rs 60,000 each for two children, then Rs 1.2 lakh under the deduction can be claimed.
Tuition fees paid to a college, school, university, college or educational institution in India can be availed for up to two children for a given fiscal year and are an effective way to reduce your stress.
However, this deduction cannot be used for coaching courses, hostel or trade fair costs.
Paying Your Home Loan: An amount of Rs 1.5 lakh may also be claimed against the repayment of the principal amount of a home loan taken out during a fiscal year under Section 80C. Even stamp duty and registration fees can be claimed below the limit of Rs 1.5 lakh.
It should be noted, however, that such properties cannot be sold within five years of owning the home. If you choose to sell the property, the deduction claimed will be added to income in the year of sale.
Health insurance and check-ups: Regular check-ups and health insurance have become indispensable, especially after the pandemic. The premium paid for health insurance is tax deductible in accordance with Section 80D of the Income Tax Act. The amount of allowance you can claim can vary widely depending on the size of your family.
A taxpayer can request a deduction of up to Rs 5,000 per year for medical checkups for self and family members. This is within the total limit of Rs 25,000 that can be claimed as a deduction from the health insurance premium for yourself, your core family, including your wife and children, provided that you are all under 60 years of age. and non-senior parents, you can get Rs 25,000 for your own core family and an additional Rs 25,000 for your parents – a total of Rs 50,000.