There is only two months left for the last quarter of the financial year 2020-21 to end. Investment proofs have to be submitted by January in most places. You have to invest in the next two months to save tax. Here we are telling you that in the next one week, in addition to the limit of Rs 1.50 lakh of 80C, where and where you can save tax in the income tax streams.
Savings on health expenses: The cost
of treatment in the country is increasing rapidly. In such a situation, it has become necessary for everyone to get health insurance. You can not only avoid financial burden at the time of illness but also get exemption from income tax by taking health insurance. Under Section 80D of the Income Tax Act, 1961, you can get a tax exemption of up to Rs 25,000 on all health insurance premiums paid for yourself, your spouse and children. You can claim income tax exemption up to Rs 25,000 separately on the premium of the health policy purchased for parents below 60 years. If your parents are senior citizens, then you can claim a rebate of up to Rs 50,000 on this item.
education loan You can claim tax exemption under Section 80E of the Income Tax Act on the interest of education loan for self, spouse or education of children. Although, you have paid interest on the education loan, the tax exemption can be claimed in the same financial year. You can avail tax exemption up to eight years from the day you start paying an education loan. Under this, there is no limit on the maximum amount to get tax exemption.
Claim of tax exemption on rent
If you are in job and get HRA from employer then you can claim tax exemption on that amount. If the salary from the employer does not include HRA and you stay on rent, then you can claim this amount to get tax exemption under Section 80GG of Income Tax Act. To claim tax exemption on HRA, you have to declare in Form 10BA.
Investment in pension scheme: Investment in
NPS i.e. National Pension System also provides tax exemption. Under Section 80CCD (1B) of the Income Tax, a tax payer can claim an additional Rs 50,000 investment tax exemption, which is in addition to the Rs 1.5 lakh valid under 80C.
Relief on the treatment of disability:
If someone in the family is disabled, then income tax exemption can be claimed on the amount of the treatment expenses. Tax exemption can be claimed on expenses up to Rs 75,000 under Section 80DD. At the same time, tax exemption can be claimed for expenses of up to Rs 1,25,000 for the treatment of severely disabled people.
You can get tax exemption under Section 80 TTA of the Income Tax Act on the interest received on savings account in section 80 TTA bank. While filling ITR, you can get exemption by including this amount in income column from other sources. Its limit is up to Rs 10,000 annually.
Section 80 TTB
If you are a senior citizen, you can claim tax exemption under Section 80 TTB of the Income Tax Act on money deposited in a bank savings account, post office deposit, term deposit and recurring account. Its maximum limit is up to Rs 50,000.
Also know Section 80G, 80GGA and 80GGC
Under Section 80G of Income Tax, tax deduction from 50 to 100% can be availed on any donation given to various funds or temples. Apart from this, you can also avail tax exemption for donations made to any political party under Section 80 GGC. Even donations made to government approved universities or institutes get tax exemption under Section 80 GGA.