Taxpayers are scrambling to save income tax before March 31 as the end of FY23 draws near. While Section 80C of the Income Tax Act is the most well-known way to save money on taxes, taxpayers can also save money in other ways.
Other options become necessary for those who have already reached Section 80C’s deduction limit of Rs 1.5 lakh. For investing in the National Pension System (NPS), Section 80CCD permits an additional deduction of Rs 50,000. Taxpayers can also deduct up to Rs 2 lakh from a home loan’s interest and Rs 1.5 lakh from the loan’s principal.
Taxpayers can get Mediclaim discounts for themselves or their elderly parents under Section 80D. A rebate of Rs 25,000 or Rs 50,000 is available to them.
Savings account interest is tax-free for common taxpayers up to Rs 10,000 per year. Under Section 80TTB, senior citizens can deduct up to Rs 50,000 from the total interest they earned in a financial year. Also, interest on instruction credits taken for post-optional training of youngsters is charge absolved under Area 80E.
Realizing these choices past Segment 80C becomes fundamental for the people who have proactively arrived at their allowance limit. Before the end of the fiscal year, taxpayers can look into these options to get the most out of their tax savings.