Tax Saving Tips: Section 80C is the most popular for tax saving. Its limit is Rs 1.5 lakh. Apart from this, tax of lakhs of rupees can be saved on different sections of the Income Tax Act. Let’s know everything about it from the experts.
Income Tax Saving Tips 2022-23: There is a famous saying in English, “A penny saved is a penny earned”. This is the reason why tax planning should be done well in time. If you do not do tax planning on time, then you will have to bear the consequences. Under the Income Tax Act, the benefit of deduction is available under different sections. The limit of each section is also different. Section 80C is the most popular section of tax saving. Under this section, tax can be saved on Rs 1.5 lakh in a financial year. Apart from this, dozens of sections have been made to save tax, which most of the taxpayers are not able to take advantage of. Chartered Accountant Garima Bajpai (CA Garima Bajpai) is explaining in detail about 5 sections other than section 80C where tax saving can be done.
Save 1 lakh rupees under 80D
In today’s world, it has become necessary for everyone to take medical insurance. As per your earning, buy adequate medical insurance for yourself and your family. Up to Rs 1 lakh can be saved under section 80D. However, for this both self and parents must be above 60 years of age. If the age of both is less than 60 years, then up to 50 thousand can be saved.
Save Rs 1.25 lakh under 80DD
Up to Rs 1.25 lakh can be saved under section 80DD. If there is a disabled person in your family, then the expenses incurred on his treatment can be availed under this section. If there is a disabled person in the spouse, parents, brother, sister, then tax exemption of up to 1.25 lakh will be given on his treatment. Tax benefit will be available up to 75 thousand in case of disability and up to 1.25 lakh in case of severe disability.
Save up to Rs 1 lakh under 80DDB
On getting treatment for some diseases, you get the benefit of deduction under section 80DDB, whose limit is up to Rs 1 lakh. It is beneficial for the treatment of self, spouse, children, parents and brother/sister. By the way, its limit is only 40 thousand. If the person who is being treated is above 60 years, then tax exemption up to Rs 1 lakh is available.
Up to Rs 1.25 lakh discount is available on 80U
If you meet with an accident that causes permanent disability, then in these cases up to Rs 1.25 lakh can be saved under section 80U. In cases of disability, its limit can be raised to Rs 75 thousand and in cases of severe disability, deduction can be raised to Rs 1.25 lakh.
Deduction is available on the interest part under 80E.
If the taxpayer himself has taken an education loan or if this loan has been taken in the name of the spouse or children, then the benefit of deduction is available under section 80E. Its advantage can be taken for the next eight years. There is no upper limit to it. The benefit of deduction is available on the interest part of the EMI of the education loan.
