Income Tax Saving: The struggle to save income tax has started once again. As soon as April starts, comp.es also start asking their employees for information about investments and other savings regarding income tax. You might have also received a mail from the company regarding the investment announcement. If you take 5 steps now, you will save income tax of more than Rs 5 lakh in the current financial year. Not only this, your money will also increase and your family will also be safe.
Exemption of Rs 1.5 lakh in 80C
Under Section 80C of the Income Tax Act, income tax is not levied on investments up to Rs 1.5 lakh. In this you can save money by investing in mutual funds like ELSS. Tax exemption can be availed on options like PPF, Sukanya, tax saving FD, home loan principal etc.
Rs 2 lakh on home loan interest
If you want to buy a house then this is the best time. Under Section 24B of Income Tax, tax exemption of up to Rs 2 lakh is also available on home loan interest. In this way you get a total tax exemption of Rs 3.5 lakh only on home loan.
75 thousand discount on health insurance
The Income Tax Department also gives exemption on health insurance. You get a tax rebate of up to Rs 25,000 on the premium for insuring yourself and your family, while you get a tax rebate of up to Rs 50,000 on health insurance for elderly parents. In this way, a total discount of Rs 75 thousand is being given on health insurance.
50 thousand discount on NPS account
If you open a Tier-2 account under the National Pension System (NPS), you will get tax exemption on investment up to Rs 50 thousand. However, it has to be kept in mind that Tier-2 account can be opened only if you have a Tier-1 account.
Benefit of up to Rs 40 thousand on FD interest
Under Section 80C of Income Tax, if you invest in tax saving FD, you will get income tax exemption of up to Rs 40 thousand on the interest earned on it. In this way you saw that by taking just 5 steps you can get the benefit of tax exemption of more than Rs 5 lakh.
