Save 4 Lakhs Tax: 80TTA, NPS, 80D, 80EE, 80CCC

The country’s budget is coming up. Every time there is hope from the budget that there will be some relief in taxes. This time too there is hope. However, if something like this happens, the tax exemption will be for the next fiscal year. If you want to save tax for this fiscal year, there is still time. Before the financial year ends, if you want to save tax, you have only two months and a few days left. In this case, the easiest tax saving option is Section 80C.

However, apart from this, there could be other good options to avail tax exemption. In this article we will see tax saving instruments through which tax payer can save tax up to 4 lakh rupees tax.

(1) Savings account interest (80TTA)

Income tax under Section 80TTA provides tax exemption on the interest earned on savings account deposits. Tax exemption can be claimed on annual interest of up to 10,000 rupees. Similarly, senior citizens can avail tax exemption of up to 50,000 rupees on annual interest under Section 80TTB on different savings accounts.

(2) National Pension System (NPS)

NPS investment provides a tax exemption of up to 50,000 rupees. This exemption is available under Section 80CCD (1B). This means that if you have to pay tax on your annual income, you can invest here and claim an exemption of up to 50,000 rupees.

(3) Health Insurance (80D)

Under Section 80D of income tax, there is a tax exemption on health insurance premiums. Depending on who is included in the policy and their age, you can claim a tax exemption ranging from ₹25,000 to ₹1 lakh. You can claim 25,000-25,000 rupees for yourself and your parents.

(4) Home Loan (80EE)

There are two ways to get a tax exemption on home loan repayment. Up to ₹1.5 lakh tax exemption is available on the principal amount under 80C. In addition, there is a tax exemption of up to ₹2 lakh on interest under Section 24. Apart from this, the government provides an additional exemption on home loan interest under income tax Section 80EE for first-time home buyers. There should be no other property in your name. Under this section, you can claim an additional tax exemption of up to 50,000 rupees. The condition is that the property should be valued at less than 50 lakh rupees and the loan should be 35 lakh rupees or less.

(5) Charitable Institute Donation Exemption

If you make charitable donations, you can save tax on this as well. A tax exemption can be claimed on charitable amounts under income tax Section 80CCC. Donations made to recognized charitable institutions fall under the purview of tax exemption. However, full donations are not eligible for tax exemption. You can claim tax exemption on amounts exceeding 200 rupees.


Nikesh-Mehta-AllOnMoney

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].


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