In view of the Covid 19 epidemic, the government has shifted the date of filing of ITR to September. Even before this, this date has been extended many times.
CBDT has extended the date of filing of ITR by individual taxpayers from 31st July 2021 to 30th September 2021. By filing ITR, we inform the government how much we earned in the current financial year and how much tax we paid to the government. For a middle class person, tax is like a burden. But if we want, we can save tax levied by the government through tax planning.
Tax planning is one of the ways that helps you save tax and increase your income. The Income Tax Act provides deduction for various investments, savings and expenditure made by the taxpayer in a particular financial year. Today we will tell you some such ways that can help you save tax.
Invest up to 1.5 lakhs under Section 80C : Section 80C is one of the most popular ways to save tax. It allows deduction up to a maximum of Rs 1.5 lakh every year from the total income of the taxpayers. Under this, by investing in any government savings or mutual fund, your income can be shown as low as 1.5 lakh.
National Pension System: The National Pension System (NPS) allows one to create a retirement corpus by investing in equity and debt pension funds. You can withdraw it at the age of 60. By investing in this, taxpayers can reduce their income up to 50000.
Payment of health insurance premium: Today in the Corona era, many people had to struggle financially to get treatment, but health insurance is one such solution which helps in saving tax along with being useful in this difficult situation. Under this, by paying health insurance premium, the taxpayer can understate his income up to Rs 25,000. Whereas for senior citizens, this limit is up to Rs 50,000. An individual contributing health insurance for himself and the senior citizen parent can jointly avail deduction/deduction of up to Rs.75,000 per annum.
Get deduction on rent: If you get HRA i.e. House Rent Allowance then you can claim tax deduction on your House Rent Allowance (HRA). If you do not get House Rent Allowance (HRA) but pay rent, you can get deduction of up to Rs 60,000 per annum in your income under Section 80GG of the Income Tax Act.
You can also save tax with home loan : Did you know that you can also save tax through your home loan interest? If you have taken a home loan, the interest paid on it is deductible up to Rs 2 lakh per annum under section 24 of the Income Tax Act. But if you let the house out there is no upper limit.