Income Tax News: There are ways for taxpayers to drastically lower their taxable income, which might result in income tax savings of up to Rs 5 lakh. The following is how people can apply for tax exemptions:
Utilize Section 80C Deductions
Investors in Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), and other programs are eligible for deductions under Section 80C.
Explore Section 80D for Health Insurance Premiums
Section 80D allows for the deduction of health insurance premiums. Purchasing health insurance policies for themselves and their families can help individuals save money on taxes.
Opt for Home Loan Repayment Benefits
Repayment of a home loan is tax benefited under Section 80EE and Section 24. Deductions are available for home loan interest and principal repayment, which lower taxable income.
Consider Tuition Fee Deductions
Taxpayers are able to deduct tuition costs for their children’s education under Section 80C. Fees for up to two children in schools, colleges, and universities are deductible.
Maximize NPS Contributions
Under Section 80CCD(1B), contributions made to the National Pension System (NPS) are deductible. By safeguarding their retirement funds and investing in NPS, taxpayers can avoid paying extra taxes.
Taxpayers can improve their financial planning and limit their tax responsibilities by utilizing these tax-saving alternatives, which could result in significant income tax savings.
