income tax To save, people often resort to the same old methods – like investing under Section 80C, claiming home loan interest or buying health insurance. But there are some tricks, by adopting which you can save a lot of tax (How to save tax). Today we are going to tell you 5 easy and unique ways, by adopting which you can save a lot of tax (Income Tax Savings). Very few people know about these methods.
You can also get tax exemption on pre-nursery fees!
If your child studies in a playgroup, pre-nursery or nursery, you can also get tax exemption on his fees. This exemption comes under Section 80C of the Income Tax Act. This tax benefit came into effect in 2015, but it was not as popular as the school tuition fee deduction. You can claim tax exemption on fees for a maximum of two children.
Pay interest to parents and get tax exemption
If your parents fall in a low tax bracket or are not taxable, you can take a loan from them for household expenses and get tax exemption by paying interest on it. By providing proof of interest payment (verified certificate), you can claim a maximum exemption of Rs 2 lakh under Section 24B.
Pay rent to parents and save tax on HRA
If you live with your parents and are not able to avail HRA, then this method is useful for you. Pay house rent to your parents and claim HRA under Section 10(13A) by treating them as tenants. It is completely legal. But keep in mind that if you are taking any other housing benefit, you will not be able to claim HRA.
Save Tax on Family Health Insurance
You can also get tax exemption while taking care of your family’s health. Under Section 80D, a rebate of up to Rs 25,000 is available on the health insurance premium of parents (below 65 years of age). A rebate of up to Rs 50,000 is available for parents (above 65 years of age). Exemption is also available on insurance premiums for wife and children.
Tax exemption on medical expenses
If your parents are 60 years of age or older, you can claim tax exemption on their medical expenses. The maximum exemption under Section 80D is Rs 50,000. Medical expenses for senior citizens are often very high. This tax exemption helps in handling these expenses.
Then what should be done?
You can easily reduce your tax liability by adopting these less-used methods. Be it pre-nursery fees, interest paid to parents or health insurance – don’t forget to take advantage of these avenues.
