A responsible citizen must do income tax payment every year to keep their financial profile secure and strong. Normal tax rates are quite high in India and for many taxpayers the amount stands quite high by the end of the financial year. This is why taxpayers look for ways to save tax during tax return filing and there are plenty ways by which you can save taxes. These are personal expenses such as loans or fees or bonds that avails great saving in tax returns.
House Rent and Home Loan Repayment:
If you are staying in a rented house, then you have got a silver lining for savings in income tax payment. The HRA you can claim will be 40% or 50% (for metros only) of the basic pay or the actual HRA or rent paid 10% less than basic pay. If you have got your own house that demands a huge amount of EMI then you an avail a Rs 2 lakhs discount for the first house in tax return filing. And if your spouse is also a joint owner of that house than the discount will apply to both.
Tuition Fees and Education Loan:
If you have a dependent child who is studying in a Government recognized institutions, then you can claim a benefit of maximum Rs 1.5 lakhs on income tax payment. The course has to be a full time course and no other educational expenses except tuition fees can be claimed under this provision. Or, if you have taken an educational loan, then you can claim a deduction for the amount of interest you are paying. However, such deductions can be claimed during tax return filing only for the first eight years of the loan taken.
Disable Person Care / Disease Treatment:
If you have a disable person such as spouse or parents or siblings or children in your family then you can avail a tax relief of Rs 75,000 (40% disability) or Rs 1,25,000 (80% disability) on your annual income tax payment. If your dependents are going through treatment for diseases like Dementia, Deformans, Dystonia Musculorum, Parkinson’s disease, Motor Neuron Disease, Chorea, Ataxia, Aphasia, Renal Failure, Malignant cancers or Hematological Disorders then you a claim benefit during tax return filing. Even, medical expenses such as insurance purchase can save up to Rs 25,000 for self and Rs 30,000 for parents.
Other than these, you can claim a benefit on the 50% or 100% amount donated for any scientific or developmental cause. Though, no deduction is allowed for the donated amount that exceeds 10% of the gross salary during income tax payment.
Source : https://www.evernote.com/shard/s324/sh/39354711-60f0-463f-b052-125a31fb22e3/a6dce9ef0902c28a0b9871e1af4a08af
Also Read : Cash Deposit: New Rules as of 20 December
House Rent and Home Loan Repayment:
If you are staying in a rented house, then you have got a silver lining for savings in income tax payment. The HRA you can claim will be 40% or 50% (for metros only) of the basic pay or the actual HRA or rent paid 10% less than basic pay. If you have got your own house that demands a huge amount of EMI then you an avail a Rs 2 lakhs discount for the first house in tax return filing. And if your spouse is also a joint owner of that house than the discount will apply to both.
Tuition Fees and Education Loan:
If you have a dependent child who is studying in a Government recognized institutions, then you can claim a benefit of maximum Rs 1.5 lakhs on income tax payment. The course has to be a full time course and no other educational expenses except tuition fees can be claimed under this provision. Or, if you have taken an educational loan, then you can claim a deduction for the amount of interest you are paying. However, such deductions can be claimed during tax return filing only for the first eight years of the loan taken.
Disable Person Care / Disease Treatment:
If you have a disable person such as spouse or parents or siblings or children in your family then you can avail a tax relief of Rs 75,000 (40% disability) or Rs 1,25,000 (80% disability) on your annual income tax payment. If your dependents are going through treatment for diseases like Dementia, Deformans, Dystonia Musculorum, Parkinson’s disease, Motor Neuron Disease, Chorea, Ataxia, Aphasia, Renal Failure, Malignant cancers or Hematological Disorders then you a claim benefit during tax return filing. Even, medical expenses such as insurance purchase can save up to Rs 25,000 for self and Rs 30,000 for parents.
Other than these, you can claim a benefit on the 50% or 100% amount donated for any scientific or developmental cause. Though, no deduction is allowed for the donated amount that exceeds 10% of the gross salary during income tax payment.
Source : https://www.evernote.com/shard/s324/sh/39354711-60f0-463f-b052-125a31fb22e3/a6dce9ef0902c28a0b9871e1af4a08af
Also Read : Cash Deposit: New Rules as of 20 December
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