Income Tax News: Tax savers are not familiar to all taxpayers. We’re going to give you six of these methods today that can help you save up to Rs 6.5 lakh in taxes. Sections of the Income Tax Act 1961 exempt Indian citizens from paying income taxes. Every taxpayer must submit an ITR return once a year. You have to pay taxes if your income is subject to income tax. Taxpayers who file an ITR are given the option by the government to save Rs 1.5 lakh in taxes each year.
Introduction to Tax-Saving Methods
But not every taxpayer knows how to reduce their taxes. We’re going to give you six of these methods today that can help you save up to Rs 6.5 lakh in taxes. Up to Rs 12 lakh in profits, you won’t be required to pay any taxes. Let us inform you that income up to Rs 5 lakh was previously tax-free under the previous tax system.
Here is the six ways
You can arrange your salary, if it is Rs 12 lakh, so that your phone bills come to Rs 6,000, your LTA is Rs 10,000, and your HRA is Rs 3.60 lakh. Under Section 16, a standard deduction of Rs 50,000 would be made from your salary. You are eligible for a Rs. 2,500 profession tax exemption.
Section 10 (13A) allows for the claim of HRA of Rs 3.60 lakh and Section 10 (5) allows for the claim of LTA of Rs 10,000. Your taxable pay would be reduced to Rs 7,71,500 after these deductions.
You are eligible for an extra deduction of Rs 1.50 lakh under Section 80C if you have paid your child’s tuition expenses or invested in LIC, PPF, or EPF.
Under section 80CCD, investors in the National Pension Scheme’s Tier-1 scheme are eligible for an extra deduction of Rs 50,000. Your net income after these two deductions will be Rs 5,71,500.
You can claim a tax exemption under Section 80D for the premiums you pay for health insurance policies. However, you are eligible to receive a reimbursement of Rs 25,000 towards the cost of your spouse’s or kids’ health insurance.
You are eligible to receive an extra reimbursement of Rs 50,000 for the premiums you paid for your elderly parents’ health insurance. This will result in a reduction of Rs. 75,000 from your income, bringing it down to Rs. 4,96,500.
Tax-Saving Investment Options
PPF, Employee Provident Fund (EPF), Equity Linked Saving Scheme (ELSS), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY), Senior Citizen Saving Scheme (SCSS), Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Saving Scheme (ELSS), National Pension System (NPS).
Tax experts state that you can claim tax exemption under certain conditions if you invest your savings in these programmes. Additionally, you can eventually arrange for more funds for yourself with this. We would like to inform you that the ITR file deadline is July 31, 2024.
