Getty ImagesThose with taxable income at 30% can save 45,000 by claiming 1.5 lakh as deduction under Section 80C and not opting for the new ‘simplified’ personal income tax regime.
...And savings beyond 80c
If you have not opted for the new tax regime and your basic salary is over 1 lakh a month, your 80C limit will be used up by provident fund contributions alone. Want to save more? You can save up to 82,500 a year in taxes (excluding surcharge and education cess) over and above the 1.5 lakh limit if you invest 50,000 in NPS, pay 25,000 for medical insurance and also repay interest of 2 lakh on housing loan for a self-occupied property.
A few more deductions are available:
1 Interest earned on savings bank account with a bank or post office. If you are less than 60, up to 10,000 (even for NRO savings a/c). If you are 60 or more, up to 50,000. Interest from FD also exempt for senior citizen.
2 Interest on education loan. No limit, but deduction available for maximum 8 years.
3 Disability-related tax benefits 75,000 ( 1.25 lakh for severe disability) for expenditure in treatment or training of self, dependent spouse, child, parent or even sibling. This can be claimed by the dependent or the person he/she is dependent on. Deduction also available on amount deposited with LIC or any other insurer, provided payment of annuity/ lump-sum amount is made for the benefit of the dependent, in case of the guardian turning 60 or passing away.
4 Treatment for certain diseases such as AIDS or malignant cancers for self and dependents up to 40,000 (up to 1,00,000 for those who are 60 years or more).
5 Donation: 100% or 50% of the amount donated (subject to conditions), depending on the institute/fund to which contribution is made. No deduction is allowed if donation is made in cash over 2,000.
6 Deduction of 1.5 lakh on the interest paid on loans taken to purchase electric vehicles from any financial institution.
(With inputs from EY)
...And savings beyond 80c
If you have not opted for the new tax regime and your basic salary is over 1 lakh a month, your 80C limit will be used up by provident fund contributions alone. Want to save more? You can save up to 82,500 a year in taxes (excluding surcharge and education cess) over and above the 1.5 lakh limit if you invest 50,000 in NPS, pay 25,000 for medical insurance and also repay interest of 2 lakh on housing loan for a self-occupied property.
A few more deductions are available:
1 Interest earned on savings bank account with a bank or post office. If you are less than 60, up to 10,000 (even for NRO savings a/c). If you are 60 or more, up to 50,000. Interest from FD also exempt for senior citizen.
2 Interest on education loan. No limit, but deduction available for maximum 8 years.
3 Disability-related tax benefits 75,000 ( 1.25 lakh for severe disability) for expenditure in treatment or training of self, dependent spouse, child, parent or even sibling. This can be claimed by the dependent or the person he/she is dependent on. Deduction also available on amount deposited with LIC or any other insurer, provided payment of annuity/ lump-sum amount is made for the benefit of the dependent, in case of the guardian turning 60 or passing away.
4 Treatment for certain diseases such as AIDS or malignant cancers for self and dependents up to 40,000 (up to 1,00,000 for those who are 60 years or more).
5 Donation: 100% or 50% of the amount donated (subject to conditions), depending on the institute/fund to which contribution is made. No deduction is allowed if donation is made in cash over 2,000.
6 Deduction of 1.5 lakh on the interest paid on loans taken to purchase electric vehicles from any financial institution.
(With inputs from EY)
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