Tax Savings Option: Save More Money

Inflation is increasing rapidly. The expenses of the common man have also increased at an equal rate.

To meet those expenses, the income of the common man is also falling short. To meet his expenses, he must obtain a personal loan and a credit card from a bank.

As a result, everyone begins to consider ways to save tax on their earnings.

If you are also thinking about saving tax, then this news will be very beneficial for you. In this news, we will tell you how you can save money through taxes.

Tax Savings on Education Loans

If a loan is to be taken for higher education, then tax exemption is also available on the interest paid on the loan.

Under Section 80E, a tax exemption is available on the interest on the loan. It is worth remembering that you have taken this loan from a recognised bank or from a recognised organisation only, and it has been taken for your family.

This exemption is available for the immediately following 7 assessment years or until the entire loan is repaid, whichever is earlier.

Tax Savings of Up to One Lakh Fifty Rupees Are Possible

Under Section 80C (Tax Savings 80c) of the Tax Act, you can save tax up to one lakh fifty thousand rupees.

If your limit is reached, then you have many other different means by which you can save on tax on your earnings.

Retirement planning, family protection, and home-buying options are included. You can also save taxes by keeping your money in an account.

Tax Savings on House Rent

If you work, you can save money on your taxes by taking advantage of the house rent allowance.HRA employees are given house rent by the company.

Under Section 80GG, its deduction is available and comes under the Income Tax Act.

Save Tax on Your Deposits

Under Section 80TTB of the Income Tax Act, you get a tax exemption on the interest earned on the deposited amount.

The maximum limit of this exemption is 50 thousand rupees per year. Whereas, under Section 80TTA, a tax exemption of up to Rs 10,000 on savings account interest income is not available to senior citizens.

Tax Savings From the National Pension Scheme

Under Section 80CCD (1B) of the Income Tax Act, you can take advantage of a tax exemption of up to Rs 50,000 if you invest your money in the National Pension Scheme.

Remember, however, that this deduction is limited to Rs 1 lakh under Section 80CCD (1). It will be available after an investment of up to fifty thousand rupees, and the same deduction cannot be claimed under both sections. meaning you can save some extra money.

Tax Savings With Health Insurance

You can get a tax exemption up to Rs 25,000 if you are paying a health insurance premium and you are under 60 years old.

You can pay premiums for yourself, your spouse, and your children. This premium of yours will be deductible under Section 80D of the Income Tax Act. Those over the age of 60 will benefit from tax savings of up to Rs 50 thousand.

Tax Savings on Medical Expenses

If you are diagnosed with a major illness, the expenses incurred for the treatment of that illness are also tax-exempt under Section 80DDB of the Income Tax Act.

This amount is spent on treating oneself and his family, which includes his spouse, dependent parents, and siblings.

But that disease should come under Rule 11DD of the Income Tax Act. This deduction is up to Rs 1 lakh in the case of senior citizens and Rs 40,000 in other cases.