Everyone gets worried during the season of submission of income tax. Some people tend to hire lawyers to save the maximum amount of money. In the interim budget of the year 2019, there were various tax proposals that would alter the lives of nearly 30 million Indian salaried and pensioners. While no adjustments have been made in the tax slab, but due to tax proposals kept in this budget, people who get less than Rs. 5 lakh will get a full tax rebate. For people earning more than Rs. 5 lakhs, other amendments have been executed to decrease the burden of their tax.
Here are some of the ways other than section 80C by which you can save income tax in the assessment year 2020-21.
Looking at the rising costs of healthcare treatment, it has become essential for a common man to purchase health insurance. Apart from this, it can also benefit you to save tax under Section 80 (D). This advantage is applicable to the premium paid for your wife, children, and parents. Under section 80 (D), you can claim separately for tax deduction up to Rs 25,000.
In exchange for the payment of the interest of education loan received for himself, his spouse or even taken by children for higher studies, the tax deduction can be claimed under section 80E. The deduction for the interest paid is to be claimed in the same financial year. Apart from this, the deduction can be availed for eight years from the day of commencement of loan.
On donations made to certain funds, charitable institutions, or any other government aid, one can claim for income tax deduction under Section 80 (G). However, the funds or donations made should not exceed 10% of the gross total income. In addition, the donations given in cash can get tax benefits only if it is less than Rs 2,000.
Section 80 TTL (Section 80TTA)
The amount of interest earned on Savings Account can be availed of under this section. Interest on the Savings Account should be included in ‘Income from Other Sources’, which can benefit the deduction under Section 80 (TTA). The limit of the reduction under this section is Rs. 10,000.
Section 80TTB (Section 80TTB)
On the money deposited in the Bank Savings Account, Post Office, Fixed deposits, Term Deposit, and Recurring Account, the benefit availed by senior citizens can get tax deduction under section 80 (TTB). The maximum rebate limit under this scheme is 50,000 rupees.
section 80 (CCD)
By investing in NPS, one can claim a tax deduction up to Rs. 50,000 under section 80 (CCD).