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Top 5 Tax Saving Schemes: The budget for the financial year 2023-24 has been presented. Middle class salaried and other earning individuals are busy calculating their tax saving options which they can use to save more than the Rs 7 lakh annual limit. The benefits of the method we will tell you today can only be availed under the old income tax regime, those who want to claim these benefits will need to opt for the old tax regime, because from April 1, 2023, the new income tax regime will apply to an earning person. There will be a default tax regime for Let us tell you, in this budget, the Government of India has announced a new tax regime, in which taxpayers are exempted from paying any tax on income up to Rs 7 lakh. In the old scheme it used to be Rs 5 lakh. However, there is still the freedom to choose the old tax regime.
These are the top-5 tax saving schemes
NPS
An individual earning in the National Pension System (NPS) scheme is given an additional tax deduction of Rs 50,000 under section 80CCD (1B). So if an earning individual has exhausted his investment limit of 1.50 lakh per annum, he can claim income tax exemption on his investment in NPS account under this section. In this, tax exemption can be claimed on investment up to Rs 50,000 in a financial year.
health insurance premium
Under Section 80D of the Income Tax Act, a taxpayer can claim tax exemption on the premium paid on health insurance. The exemption ranges from Rs 25,000 to Rs 1 lakh in a financial year. A taxpayer is allowed to claim tax exemption on health insurance premium up to Rs 25,000 if he is below 60 years of age. If the taxpayer is paying health insurance premium for his parents, who are below the age of 60 years, then in that case the taxpayers can also claim additional tax exemption on health insurance up to Rs.25,000 paid for the parents. can claim.
5 cool techniques to save tax
This amount limit increases to Rs 50,000 per year in case the parent is a senior citizen. However, in both the cases, both the parent and the child cannot claim tax exemption on the same health insurance premium. It is mandatory to have separate health insurance here. However, in case the taxpayer is a senior citizen, the annual limit of Rs 25,000 goes up to Rs 1 lakh in that case. So if a taxpayer is a senior citizen and is paying health insurance premium for his parents as well, then in that case the taxpayers can claim tax exemption up to Rs.1 lakh (Rs.50,000 for self and Rs.50,000 for parents). Will be able to claim.) Can claim under section 80D.
tax exemption on home loan
A taxpayer who is paying home loan EMI can claim tax exemption of up to Rs 2 lakh on the home loan interest paid. However, the home loan borrower must be living in the unit or the unit must be self-occupied.
Interest on deposits in savings account
Under Section 80TTA, savings account holders can claim TDS exemption on interest earned up to Rs 10,000 in a financial year. This amount is applicable to all bank savings accounts. Hence if one has more than one savings account, taxpayers are advised to calculate the entire savings account interest of all the bank accounts. In case of senior citizens, this limit under section 80TTB is Rs 50,000.
Donating to Charitable Institutions
Under section 80CCC, if the taxpayers have paid donations to an approved charitable institution, then in that case the person can claim tax exemption under section 80CCC. However, in case of donation in cash, the limit is capped at Rs 2,000. Therefore, in case of donations above Rs 2,000, the payment should be made through bank cheque. But, paying only through check will not work as you need a donation receipt stamped by the trust mentioning its address, PAN card details with the name of the trust written on it. After that you can claim tax exemption.
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