When we are submit income tax returns, than we are also think about How to Save Income Tax While fill income tax return. Today we will tell you how you can save income tax without section 80c Deduction.
The date for filing income tax returns is gradually coming closer. Income tax returns for the last financial year are to be filed by 30 November 2020. It is usually filled by the end of July. However, it was pushed forward due to the Covid-19 crisis.
Income Tax Return AY 2020-21
Giving a big relief to taxpayers, the Income Tax (IT) Department extended the last date for filing of individual income tax returns (ITRs) for FY 2019-20 or Assessment year AY 2020-21 by another month till December 31. This is the second time the Central Board of Direct Taxes (CBDT) has extended the last date for filing of ITR for AY 2020-21.
While this gives some extra time to file income tax returns, the taxpayers should know that they still need to complete the process before the mentioned date. In case you fail to do so a hefty penalty can be imposed. The penalty for late ITR filing was introduced from 2017-18. A late filing fee is applicable if ITR is filed after the due date, which for the current assessment year 2019-20 is December 31, 2020.
Section 80c Deduction Income Tax Act
The most popular way to save income tax is Section 80c Deduction, but most of the savings schemes come under its purview and the rebate is only 1.5 lakh rupees. In such a situation, tax can also be saved by investing in other option. Apart form 80c deduction, there are 9 such option, in which you can save maximum income tax while filling income tax returns.
Types of How to Save Income Tax
- National Pension System (NPS)
- Education Loan Tax Benefit
- Health Insurance Tax Deduction
- Home Loan Tax Benefit
- Buy New Property For a First Time
- House Rent Allowance (HRA)
- Savings Bank Interest Tax Deduction
- Tax Deduction on Medical Expenses
- Tax Deduction on Donation
Read Full Information
1. National Pension System (NPS)
In the National Pension System (NPS), You can save tax of 1.5 lakh under section 80C, but above this, additional savings of Rs 50,000 can be made under section 80CCD(1B). That means you can save up to 2 lakh rupees in total.
2. Education Loan Tax Benefit
If you have taken a loan for the education of children, then you can claim tax exemption on the repayment of it. Under section 80E you can get tax rebate on the interest portion of education loan. Anyone can take this tax exemption parent and child, it will be decided on who is paying the loan. There is no limit of tax exemption, you can claim tax exemption on interest as much as you want. If you want a Know perfect idea how to save income tax then education loan is a better idea for save income tax.
3. Health Insurance Tax Deduction
Under section 80D you can claim Health Insurance Premium. How much tax exemption will you get under 80D depends on who is included in this policy and what is their age. In this way, you can claim tax savings of up to Rs 25,000 to Rs 50,000 and Rs 1 lakh.
4. Home Loan Tax Benefit
You can claim tax exemption on Home Loan repayment in two ways. On the principal amount, you get a tax rebate of Rs 1.5 lakh under 80C, as well as a rebate on interest component under section 24.
Under this section you can get tax exemption up to a maximum of 2 lakh rupees , provided the property is in your name and you live in it. If you do not live in that house but you have given it on rent, then there is no limit to claim you tax exemption, that is, whatever interest you have paid during one year, will come under the purview of full tax exemption.
5. Buy New Property For a First Time
The Government gives additional rebate on the interest of home loan under section 80EE to those who buy their first house, provided there should be no other house in your name before this. Under this section. you can claim additional tax up to Rs 50,000. This exemption is in addition to the exemption provided under section 24. That is, for the first time home buyers get a discount of at least 2.5 lakh rupees in a year only on the interest of home loan. The condition for this is that the property should be worth less then Rs 50 lakh and the loan should be 35 lakh or less.
6. House Rent Allowance (HRA)
If you are salaried person and your company gives House Rent Allowance(HRA), Then you get tax exemption on rent. But if you do not get any HRA, then you cannot claim tax exemption on house rent. This happens when you either work in the unorganized sector or do work of your own. The government gives the option of section 80GG to such people. If you want a Know perfect idea how to save income tax then House Rent Allowance also better idea for save income tax.
7. Savings Bank Interest Tax Deduction
You can also get tax rebate on the interest from savings bank account. Under section 80TTA, any person of HUF can get tax exemption up to a maximum of Rs 10,000. This includes banks, co-operative societies or Post Office Saving Accounts. This tax exemption is for everyone, there is no condition for Senior Citizens. Interest above Rs 10,000 will be counted in the other income category and tax will have to be paid on it. If you want a Know perfect idea how to save income tax then savings bank interest is a better idea for save income tax.
8. Tax Deduction on Medical Expenses
If you take care of a handicap people, then the expenses incurred on it can be claimed under section 80DD. That disabled person can be any member of the family, such as parents, children or siblings. How much tax exemption you will get depends on disability of the handicap. There is a tax rebate from Rs 75,000 to Rs 1.25 lakh.
Treatment of certain diseases like Cancer, Neurological Disease or AIDS is quite expensive. The government gives tax exemption of up to Rs 40,000 under section 80DDB. In the case of senior citizens, the tax exemption is Rs 1 lakh.
9. Tax Deduction on Donation
If you make some charity, you can save tax on this too. Donation made to an accredited charitable institution under section 80G is subject to tax exemption. However, the entire donation in not available for tax rebate.