Income Tax News: Golden Tax Saving Opportunity! Sure Shot Ways to Save up to Rs 4 Lakh, Check Out

Income Tax News: The nation's budget will soon be released. There are just two months and a few days left to save taxes before the end of the fiscal year. Section 80C provides the simplest solution in this case. However, there may be better choices available if you wish to receive a tax exemption in addition to this. We'll talk to you today about these choices, which allow you to save up to Rs 4 lakh in taxes.

Overview of the New Tax Regime

The new tax regime includes a Rs 7 lakh tax exemption. However, under the previous tax system, Section 80C (Tax Saving Section 80C) was the only place where obtaining a tax exemption was the simplest. However, the discount is only offered here up to Rs 1.5 lakh. Still, there are alternatives to Section 80C.

Tax-Free Interest under Section 80TTA

Interest earned on savings account deposits is free from tax under Section 80TTA of the Income Tax Act. Up to Rs 10,000 in annual interest may be claimed tax-free. In addition, under Section 80TTB, older citizens are free from paying taxes on interest on a variety of savings accounts up to Rs 50,000 yearly.

NPS Investment Tax Exemption

A tax exemption of up to Rs 50,000 is offered for NPS investments. You can find this exemption in section 80CCD (1B). This implies that by investing here, you can receive a refund of up to Rs 50,000 if your yearly income is taxable.

Health Insurance Premium Tax Exemption

Section 80D of the Income Tax provides a tax exemption for health insurance premiums. Who is covered by the policy, how old are they, and how much of a tax exemption (between ₹ 25,000 and ₹ 1 lakh) can you claim? You and your parents may each receive Rs 25,000.

Home Loan Repayment Tax Benefits

Regarding the repayment of home loans, there are two different kinds of tax exemptions. Under 80C, there is a ₹ 1.5 lakh tax exemption on the principal amount. In addition, interest is exempt from tax under Section 24 up to a maximum of ₹ 2 lakh.

In addition, individuals purchasing their first property are eligible for an extra exemption from home loan interest under Income Tax Section 80EE from the government. You shouldn't be the owner of another residence. You may claim additional tax under this section up to Rs 50,000. The property must be purchased for less than Rs 50 lakh, and the loan must be for no more than Rs 35 lakh.

Tax Savings through Charitable Contributions

You can also avoid taxes on this if you donate to charities. Section 80CCC of the Income Tax allows for the claim of a charitable amount exemption. A contribution made to an approved charity organisation is exempt from taxes. Nevertheless, the full donation is not eligible for exemption. Tax relief is available for payments above Rs 200.

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