Best Tips to Save Tax Without Investment?
The income tax department furnished distinct deductions and privileges to the assessee that would get excluded from the taxable income beneath chapter VI A beneath Section 80 to diminish the tax load.
Through the help of investment, you would get the deductions, however, there are indeed some deductions that one can obtain excluding any investments through executing some daily expenditures.
One of the major deductions that one could get is under 80C, some additional deductions that could lessen the tax liability of the assessee despite not saving the tax in the tax-saving instrument.
Below are the mentioned how to save income tax without investment by simple tips.
Child Education Fees Under Section 80C
One could claim deductions towards the tuition fees of your children towards full-time education of a maximum of 2 children with up to Rs 1.5 lakh beneath Section 80C of Income-tax, 1961. Also one would enable to save beneath Section 80E towards the interest furnished on loan claimed against the education of the child concerned for the duration of 8 successive years.
Interest Furnished on Home Loans Under Section 80EE
For the 1st time, the person who is purchasing a house can avail of the deduction of up to Rs 50,000 on the interest paid on the home loan beneath section 80EE. But the loan amount must not be more than Rs 35 lakhs and the price of the residential property must not be more than Rs 50 lakhs.
House Rent Allowance Under Section 10(13A)
Under Section 10(13A) of the Income Tax Act, House Rent Allowance (HRA), could be availed by the self-employed and salaried persons who do not own any residential properties towards the least of the mentioned amounts:
- a) 40 to 50% of the amount of total salary (50% towards the concern of the metropolitan city)
- b) Actual amount obtained as HRA
- c) The rent amount less than 10% of the employee’s salary
To avail the advantage of the tax the assessee should urge to furnish the rent receipts, as well as some additional information to the employer so as to avail the privileged amount.
Medical Expenses of Senior Citizen Parents U/S 80D
If the age of your parents is 60 years or exceeding that and do not undergo any medical insurance scheme then one could avail the deduction upon the money furnished on their medical expenses. A person is able to take the maximum limit of Rs. 50000 as a deduction according to section 80D of the income tax act.
