With only one month left now, the financial year 2020-21 is over. This means that you only have one month to invest to save taxes. To save tax, you must invest until 31 March 2021 so that you can take advantage of the tax deduction. We are here to tell you which section of income tax you can save on tax, other than the Rs 1.50 lakh limit of 80C.
Discount for healthcare costs
The cost of treatment is rising rapidly in the country. In such a situation, it is necessary for everyone to get health insurance. Not only can you avoid financial burden during illness, you may also be exempt from income tax by taking out health insurance. Under Section 80D of the Income Tax Act, 1961, you can claim a tax deduction of up to Rs. You can claim an income tax deduction of up to Rs 25,000 exclusively on the health policy premium purchased for parents under 60 years of age. If your parents are senior citizens, you can get a discount of up to Rs 50,000 on this item.
Discount for studies
You can claim tax deduction under Section 80E of the Income Tax Act on the interest of education loan for self, spouse or children. Even if you pay interest on an education loan, you can get a tax deduction in the same financial year. You can get a tax deduction for up to eight years from the day you start paying the education loan. There is no limit to the maximum amount that can be tax deductible.
Tax exemption on rent
If you are employed and have an HRA from an employer, you may be tax deductible on that amount. If the salary from the employer does not include HRA and you are renting, you can claim this amount for tax deduction under Section 80G of the Income Tax Act. To get a tax deduction on the HRA, you must declare on Form 10B.
Investing in a pension plan
Investing in NPS is tax exempt, ie, the National Pension System. Under Section 80 CCD (1B) of the Income Tax, the tax payer has to pay an additional Rs. An investment tax deduction is available, which is valid under 80C at Rs 1.5 lakh.
Relief on Disability Treatment
If the family has a disability, they can claim income tax deduction on medical expenses. Tax deduction on expenses up to Rs 75,000 can be obtained under Section 80DD. At the same time, the treatment of severely disabled people can be tax deductible up to Rs 1,25,000.
Section 80 TTA
You can claim a tax deduction under Section 80 TTA of the Income Tax Act on the interest you get in a savings account with a bank. When filling out the ITR, you can claim exemption by adding this amount in the income column from other sources. Its limit is Rs 10,000 per annum.
SECTION 80 TTB
If you are a senior citizen, you can get a tax deduction under Section 80TTB of the Income Tax Act, where the deposit is placed in a bank savings account, post office deposit, term deposit and recurring account. Its maximum limit is Rs.
Exceptions under Section 80G, 80GGA and 80GGC
Under Section 80G of the Income Tax, 50 to 100% of any donation to various funds or temples can be tax deductible. Furthermore, you can claim tax deduction for donations made to any political party under Section 80GGC. Donations to government approved universities or institutions are also tax deductible under Section 80 GGA.
Do not make these 5 mistakes to take advantage of the tax deduction, otherwise you will have to bear the loss