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These 5 tax saving tips are of great help to employed people, in this way they can save thousands of rupees.

Sagar Patel

By Sagar Patel

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The last date to file ITR for the financial year 2023-2024 is July 31, 2024. As per the income tax slab, if a person has opted for the old tax system, he/she will not have to pay any tax on income up to Rs 5 lakh. Whereas in the new tax system, there is no tax on income up to Rs 7 lakh.

Whether you are a salaried employee or a businessman, everyone tries to save income tax by trying their own methods. Saving tax is always a challenge for workers. They need to plan their monthly expenses along with savings, investments, and retirement. Understanding this need, here are five ways to help you save on income tax easily.

1. You can avail tax exemption on home loans.

If you have taken a home loan, you can get a tax exemption on its principal amount under Section 80C. Also, you can get a home loan interest exemption under Section 24(B) of the Income Tax Act. If the property is for independent use, a tax exemption on interest up to Rs 2 lakh can be claimed.

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2. Employees Provident Fund (EPF)

One of the easiest tax-saving options for salaried employees is the Employees Provident Fund (EPF). It provides a tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. The annual interest of up to Rs 2.5 lakh received in the PF account is tax-free.

3. Housing Rent Allowance (HRA)

House Rent Allowance (HRA) is an allowance given to employees to pay house rent. As per Section 10 (13A) of the Income Tax Act, one can avail tax exemption on HRA subject to certain limitations. Let us tell you that one can claim tax up to 50% of the basic salary for those living in metropolitan cities and up to 40% for those living in small cities and 10% of the total annual income on payment of house rent.

4. Health insurance policy

Under Section 80D of the Income Tax Act, if you pay a premium for health insurance, you get a tax exemption. If you have a health insurance policy for your spouse, children and parents, you can claim a tax deduction on the premium of up to Rs 25,000. If your parents are senior citizens, the tax exemption limit increases to Rs 50,000.

5. Opportunity to claim tuition fees

You can avail tax exemption on the tuition portion of school/college fees for your children’s education. A provision contained in Clause 17 of Section 80C of the Income Tax Act allows parents who pay school tuition or fees to claim tax exemption. This can be availed for tuition fees of up to two children. To avail this exemption, you need to submit the admission certificate and fee receipts from the institute.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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