The largest deduction from a person’s earnings is the income tax. However, the government offers several opportunities to invest in various schemes and reduce income tax payments. Under the new income tax slabs, no tax will have to be paid for salaries between 0 and Rs 3 lakh. 5 percent on those between Rs 3 and 6 lakhs, 10 percent between Rs 6 lakh and Rs 9 lakh, 15 percent between Rs 12 lakh and Rs 15 lakh, and 30 percent above Rs 15 lakh. After standard deductions, those with salaries up to Rs 7 lakh won’t have to pay any taxes.
Here are the tax saving options other than Section 80C of the income tax act:
National Pension Scheme (NPS)
An earning individual in the National Pension System (NPS) scheme is allowed an additional 50,000 tax deductions under Section 80CCD (1B). You are eligible for a maximum reduction of Rs 2 lakh under this scheme.
Health insurance: A taxpayer may claim tax rebate on the premiums they paid for health insurance during the assessment cycle under Section 80D of the Income Tax Act. The rebate ranges from Rs 25,000 to Rs1 lakh. If a taxpayer is paying the parents’ health insurance premiums and they are under 60 years old, they are eligible for an additional tax rebate of up to Rs 25,000 on the cost of their parent’s health insurance.
Home loan: Taxpayers who are making house loan payments each month are eligible to receive a tax credit of up to Rs 2 lakh on the interest they paid throughout the assessment period.
Read More: New Income Tax Slabs for Super Senior Citizens 2023-24: Which rate will apply for ITR now?
Savings account deposits: A depositor with a savings account may use Section 80TTA to claim TDS exemption on up to 10,000 in interest earned in a single fiscal year. All bank savings accounts are subject to this amount.
Donations to charitable institutions: A taxpayer may claim a tax exemption under Section 80CCC if they have made a donation to an authorised charity organisation. The limitation is set at Rs 2,000 for donations made in cash, though. Therefore, if making a donation that is greater than Rs 2,000, one should use a bank check. However, paying by check alone will not be sufficient since you also need a PAN card with the trust’s name inscribed on it and a stamped receipt of the trust’s donation that includes its address.
