Ways to reduce tax liability
If after all deduction, your taxable income is not more than Rs 5 lakh, then you will not have to pay any tax. There are many deductions available to reduce your taxable income. It is a different matter that conditions are attached to them. With their help, you can reduce your tax liability. Come, let’s know about them here.
Savings account interest
Categories in 80 TTA
No tax liability arises on interest earned up to Rs 10,000 from a savings account.
Medical insurance
Categories in section 80 D
There is a tax rebate on premiums of up to Rs 25,000 for medical insurance for yourself and your family. For the parents, there is a rebate of Rs 25,000 on the payment of the premium for such cover. If the parents are more than 60 years of age, the exemption is up to Rs 50,000.
Education loan
Categories in section 80
A rebate is available on the interest payment for an education loan for his or her dependents. This deduction can be claimed for a maximum period of eight financial years.
Electric car purchase
Categories in section 80 EEB
Tax rebate is available on the payment of loan interest up to Rs 1.5 lakh for the purchase of electric vehicle.
donation
section 80 G
Donations given to recognized institutions can be claimed as deduction. Donations of more than Rs 2,000 cannot be given in cash.
House rent without HRA
Categories in 80 GG
If you do not get HRA, you can claim the amount withdrawn by reducing the rent paid by up to Rs 5,000 a month, or 25 per cent of the income or 10 per cent of the income.
Incapacity
Categories in 80DD and 80U
If there is any disability in the taxpayer, then he can claim deduction up to Rs 75000-1.25 lakh.
Medical treatment
Categories in 80 DDB
A tax exemption of up to Rs 40,000 is available if the taxpayer or the person dependent on him is being treated for a particular disease. In the case of senior citizens, it is one lakh rupees.
