Everybody hates paying taxes and all the time are on lookout for Choices to Save Tax. Nonetheless the earnings tax guidelines in India are difficult and its changing into extra so in recent times. Price range 2020 launched the idea of New Tax Regime, then there have been a number of modifications to the legal guidelines in 2020. Fortunately Price range 2021 has been much less occasion full with very minor tweaking to the earnings tax guidelines. On this put up we attempt to discover – What’s the Most Revenue Tax I can save for FY 2021-22?
To make it easy, now we have listed all of the tax saving tax sections within the desk under. It will provide help to test when you have taken benefit of the related part. We’ve additionally revealed eBook which tells you about all choices to avoid wasting tax which might be accessible to a person (each salaried & enterprise).
Choices to Save Tax for FY 2021-22
Broadly talking If you’ll be able to avail all these sections you may make greater than Rs 14 Lakhs earnings tax free. However sadly not all sections can be relevant for you. The desk under provides the main points of all of the tax exemptions accessible:
|S. No.||Tax Sections||Description||Most Tax Exemption Restrict (Rs.)|
|1||80C/ 80CCC/ 80CCD||Funding in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance coverage, SCSS, SSA and NPS. Additionally consists of Residence Mortgage Principal reimbursement, Tuition Charges, Stamp Obligation. Finest Tax Saving Investments u/s 80C||1,50,000|
|2||80CCD(1B)||Funding in NPS (Do you have to Make investments Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?)||50,000|
|3||24||Curiosity paid on Residence Mortgage for Self occupied houses. You possibly can declare declare Tax Profit on each HRA & Residence Mortgage – Know How?||2,00,000|
|3 A||80EEA||Further Tax Deduction of Rs 1.5 lakhs on house loans on buy of inexpensive house (topic to sure situations)||1,50,000|
|4||80EEB||Further tax deduction of Rs 1.5 lakhs for fee of curiosity on auto mortgage taken for buy of electrical autos||1,50,000|
|5||80E||Curiosity paid on Training Mortgage. No Restrict – Rs 50,000 is simply an assumed worth Tax Profit on Training Mortgage (Sec 80E)||50,000|
|6||80D||Premium fee for medical insurance coverage for self and oldsters. Consists of Rs 5,000 restrict for preventive well being checkup Making Sense of Tax Profit on Well being Insurance coverage u/s 80D||60,000|
|7||80DDB||Remedy of Critical sickness for self and dependents (Restrict of Rs 1,00,000 for Senior Residents and Rs 40,000 for others)||80,000|
|8||80U||Bodily Disabled Tax payer (Rs 75,000 for 40% to 80% incapacity and Rs 1,25,000 for greater than 80%)||1,25,000|
|9||80DD||Bodily Disabled Dependent (Rs 75,000 for 40% to 80% incapacity and Rs 1,25,000 for greater than 80%)||1,25,000|
|10||80G||Donation to accepted charitable funds like Prime Minister Aid fund, and many others (assumed worth)||50,000|
|11||80GGA||Donations for scientific analysis or rural improvement (assumed worth)||50,000|
|12||80GGC||Donations to political events (assumed worth)||50,000|
|13 A||80TTA||Curiosity obtained in Financial savings Account Which financial institution presents highest rate of interest on financial savings account?||10,000|
|13 B||80TTB||Curiosity Revenue for Senior Residents Solely Study all about Part 80TTB||50,000|
|13 C||10(15)(i)||Curiosity as much as Rs 3,500 for single holder account and as much as Rs 7,000 for joint account in Put up Workplace Saving Account||7,000|
|14||80GG||For Lease Bills who do have HRA element in wage The best way to Declare Tax Profit for Lease Paid u/s 80GG?||60,000|
|Most Tax Exemption Potential (Rs.)||14,37,000|
Although 14 Lakhs sounds large quantity however most individuals would avail solely few of the above. Right here is the explanation:
- Rs 1.5 Lakhs exemption for donation: Individuals donate for a trigger and their ardour/empathy and to not save taxes. It’s simply that tax exemption sweetens the deal!
- Rs 2.5 Lakhs exemption on account of tax payer or his dependent being bodily disabled. It is a a lot wanted exemption however applies to only a few tax payers.
- Rs 1,00,000 deduction for remedy of significant sickness is one thing that only a few tax payers would reap the benefits of.
So out of Rs 14 lakhs, round 5 lakhs exemption can be claimed by only a few tax payers and in particular instances solely.
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