The income tax is deducted the most from a person’s earnings. However, the government provides a number of opportunities to reduce income tax payments and invest in various schemes.
Salary amounts between zero and three lakh rupees will not be subject to taxation under the new income tax slabs. 5% on those spending between Rs. 3 and Rs. 6 lakhs, 10% on those spending between Rs. 6 lakhs and Rs. 9 lakhs, 15% on those spending between Rs. 12 lakhs and Rs. 15 lakhs, and 30% on those spending more than Rs. 15 lakhs. Taxes will not be due on salaries up to Rs 7 lakh after standard deductions.
Other than Section 80C of the Income Tax Act, the following are tax-saving options:
National Pension Scheme (NPS)
Under Section 80CCD (1B), an individual who participates in the National Pension System (NPS) scheme is eligible for an additional 50,000 tax deductions. Under this program, you can get a maximum discount of Rs 2 lakh.
Health Insurance
Under Section 80D of the Income Tax Act, a taxpayer may submit a claim for a tax rebate on the health insurance premiums they paid during the assessment cycle. The rebate can be anywhere from 25,000 to 1 lakh rupees. Taxpayers under the age of 60 who are paying for their parents’ health insurance can receive an additional tax rebate of up to Rs 25,000 on the cost of their parents’ insurance.
A mortgage
A tax credit of up to Rs 2 lakh on the interest they paid during the assessment period is available to taxpayers who make monthly payments on a home loan.
Deposits into savings accounts:
Using Section 80TTA, a depositor with a savings account can claim a TDS exemption on up to 10,000 in interest earned in a single fiscal year. This amount applies to all bank savings accounts.
Donations to nonprofit organizations:
If a taxpayer has contributed to a recognized charity, they may be eligible for a tax exemption under Section 80CCC. However, cash donations are subject to a limit of Rs 2,000. Therefore, a bank check should be used for donations of more than Rs 2,000. However, just sending in a check won’t be enough because you’ll also need a PAN card with the trust’s name on it and a stamped receipt of the trust’s donation with the trust’s address on it.
