To get income tax exemption, most people try to invest more and more under section 80C of I-T Act. But apart from this, there are many other sections in the Income Tax Act, using which income tax exemption can be availed. Let us know which sections they are.
If you want to get income tax exemption for the year 2020-21, then you must invest in some schemes by 31 March. Likewise, maximum people would have opted for section 80C and 80D to get some tax exemption, but there are many more sections available. Are the use of which income tax exemption can be obtained. Let us know which are the sections which can get tax exemption.
Save tax on investments from section 80C to 1.5 lakhs
Under section 80C, Rs 1.50 lakh can be deducted from the total taxable income. For this, you get benefit by investing in many other schemes including term insurance plan, FD scheme up to 5 years and senior citizen savings scheme.
Save income tax from education loan under section 80E
For education loans taken for children, you can claim tax deduction under section 80E.
Tax exemption on health insurance under section 80D
If you pay health insurance premium for your wife and children then you can save tax. For this deduction up to Rs 25,000 can be taken under section 80D. Additional deduction is also provided by paying premium for parents. If the parents are senior citizens, deduction up to Rs 50,000 can be claimed.
1.5 lakh rebate on home loan interest under section 80EEA
Under Section 80EEA, an additional tax exemption of 1.5 lakh can be taken on the interest of home loan. But the condition for this is that the stamp value of your house should not be more than Rs 45 lakh. Along with this, home loan should be taken between 1 April 2019 to 31 March 2022. The carpet area should also not exceed 60 square meters or 645 square meters. Please tell that these conditions are for metro cities.
Tax exemption on payment of rent to parents under section 80GG
If you live in a parent’s house, you can save tax. For this, you have to pay the parents. Tax deduction can be availed as HRA exemption benefit. For this, parents should own the house and you should not partner with them. If you do not get HRA benefit, then you can claim for tax benefit under section 80GG.
This way you can save tax
You can give some money to parents for tax savings. Apart from this, fixed deposits can be opened in the name of parents. If parents come in less tax slab than you, then the interest paid on FD will be less than you. If you open the same FD in your name, then you will have to pay more tax.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.