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New Delhi5 minutes ago
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To get income tax rebate for the year 2020-21, you will have to invest in certain schemes by 31 March. Most people are aware of section 80C and 80D to get tax exemption, but apart from this, there are many such sexes in the Income Tax Act with the help of which you can get income tax exemption. Today we are telling you about them, so that you can save maximum tax.
Tax can be saved on investments ranging from 80C to 1.5 lakhs
Section 80C of the Income Tax Act is actually a part of the Income Tax Law, 1961. It mentions investment channels in which investment tax income tax exemption can be claimed. Many people start investing to save tax before the end of the financial year. Under Section 80C of the Income Tax Act, you can claim deduction of Rs 1.5 lakh from your total income. Understand this in easy language, you can reduce your total taxable income up to Rs 1,50,000 through Section 80C. Click here to know where you will get the benefit of 80C by investing
Tax rebate will be given on the expenses incurred on health insurance
Section 80D is for deduction on medical expenses. Under this, one can save tax on the health insurance premium paid for the health of himself, family and dependent parents. Section 80D deduction limit is 25 thousand rupees for premium paid for self / family. Senior citizens can claim a deduction of up to Rs 50,000 on the premium paid. Apart from this, health check up to the limit of 5000 rupees is also allowed and it is included in the overall limit.
Home loan interest under 80EEA to get 1.5 lakh discount
An additional tax exemption of Rs 1.5 lakh can be taken on the payment of home loan interest under section 80EEA. However, its first condition is that the stamp value of the house should not exceed Rs 45 lakh. The home loan is taken between 1 April 2019 to 31 March 2022. For this, the carpet area should not be more than 60 square meters or 645 square feet. This condition is for the metro cities in which metro cities come. The carpet area for other cities can be a maximum of 90 meters or 968 square feet.
Benefit of tax exemption on interest on education loan
Section 80E provides interest deduction on education loans. The important conditions associated with claiming such deduction are that the loan should be taken by a person or her husband or children from a bank or financial institution for higher education (in India or abroad). One can claim this deduction from the year in which the loan starts repaying and for the next 7 years or before the loan is repaid, whichever is earlier.
Tax rebate is available on home loan interest
Section 80EE allows the landlord to claim an additional deduction of 50 thousand rupees (section 24) on the interest of the home loan EMI. But its condition is that you loan should not be more than Rs 35 lakh and the value of the property should not be more than Rs 50 lakh. Further, a person should not have any other property registered in his name at the time of sanction of loan.
Even if you live in a rented house, you will get tax rebate
If you do not get a House Rent Allowance (HRA) but you live in a rented house, you can still get tax exemption on the rent paid under Section 80GG of the Income Tax Act, 1961. 60,000 per annum under section 80GG. (Rs. 5,000 per month). You may not get the benefit of this clause if you (or your wife / child) have a home of their own. To claim the benefits of this section, you have to fill in the 10BA form.
80DDB will save tax if spent on treatment
Under Section 80DDB, income tax is deducted on the amount spent in the treatment of serious and chronic illness of one of his dependents. An income tax payer can claim deduction of the amount spent in the treatment of his parents, children, dependent siblings and wife. These include diseases such as cancer, hemophilia, thalassemia and AIDS. Usually this deduction is 40 thousand rupees. In the case of senior citizens, this deduction can be up to Rs 1 lakh. Medical certificate is necessary for this.
80CCD (1B) will give benefit of 50 thousand
If you have taken benefit of National Pension Scheme, then you can avail income tax up to 50 thousand under section 80CCD (1B). In this way, you can avail tax exemption up to a total of 2 lakh rupees by adding section 80CCD (1B) and 80C.
Tax exemption will also be provided on the treatment of a person with disability under 80DD
If you are spending on the treatment of a disabled person, then you can get tax exemption under this section. A person with disability can have parents, wife, children, brothers and sisters who are dependent on the person concerned. In the Hindu Undivided Family (HUF) case, anyone from the family can be. The total deduction limit under this section is up to 1.5 thousand rupees.