Income Tax: How to save maximum money while filing your ITR
Income Tax Calculator: When an earning individual goes for income tax return (ITR) filing, his or her major focus should be on reducing the tax outgo.
Income Tax Calculator: When an earning individual goes for income tax return (ITR) filing, his or her major focus should be on reducing the tax outgo because a penny saved is a penny earned. If you are a methodical person, you would know about the most basic tax-saving investment option - Section 80C of the Income Tax Act, 1961. Being one of the most popular tax-saving options, most individuals claim deductions under this section to lower their taxes. It facilitates deductions of up to Rs 150,000 per annum. However, this may not be adequate and that means you have to take the next step and look at tax-saving benefits beyond Section 80C limit. Photo: PTI
Section 80C of Income Tax Act
As per the Income Tax Act, 1962; there are certain clauses that provide tax-saving investments beyond the maximum limit available under Section 80C. These tax-saving investment options help you to reduce the tax burden considerably. Tax and investment experts say that these investment options will have a positive impact on your financial life. Photo: Reuters
National Pension Scheme (NPS) calculator
Under Section 80CCD, you can invest an additional Rs 50,000 in this scheme apart from the contribution of Rs 150,000 available under Section 80C. In short, you can claim a total deduction of up to Rs 200,000 in each financial year by investing in NPS. Photo: Reuters
Interest payment on home loan EMI
The payment of interest part of a home loan is eligible for tax benefit under Section 24 of the Income Tax Act, 1961. In case the property is occupied by the person taking the home loan, the maximum limit under this section is Rs 200,000. However, if you are not staying in the property and is rented out then there is no maximum limit, allowing you to claim the whole interest amount as a tax deduction. Photo: PTI
Interest payment of the home loan for first-time buyers
You can avail of a tax benefit of Rs 50,000 under Section 80EE if you are a first-time homeowner. This amount is the above the tax deduction of Rs 200,000 that can be claimed for home loan interest repayment under Section 24. The criteria to avail of this deduction are that the total value of the house should be below Rs 50 lakhs, and the loan amount should be Rs 35 lakhs or less. Furthermore, the home loan should have been sanctioned between 1st April 2016 and 31st March 2017. Photo: PTI
Interest payment of the home loan EMI for first-time buyers
If you are a first-time homeowner then you can claim a deduction of up to Rs 150,000 under Section 80EEA. This amount is above the tax benefit of Rs 200,000 for repayment of home loan interest under Section 24. The criteria to avail of this deduction are that the stamp duty value of the house property should be below Rs 45 Lakhs. Furthermore, the home loan should have been sanctioned between 1st April, 2019 and 31st March, 2020. Photo: Reuters
Interest paid on electric vehicle loan
Under Section 80EEB, you can claim a tax deduction of up to Rs 150,000 for the interest repayment for a loan taken for the purchase of an electric vehicle. To be eligible, the loan should have been sanctioned between 1st April 2019 and 31stMarch 2023. Photo: PTI
Interest earned from saving account
A deduction of up to Rs 10,000 can be claimed under Section 80TTA for interest earned from a saving bank account with a banking company, a post-office or a co-operative society engaged in the business of banking. Photo: PTI
LTCG on sale of the residential property
An Individual or a HUF can claim an exemption under section 54 if the capital gain is invested to purchase a new residential house within one year prior to the date of sale or two years after the date of sale of the original house or construct a new house within a period of 3 years from the date of sale of the original house. Photo: PTI