The 2020-21 financial years has come to an end. At the same time, it is time to give details of investments for the whole year. If you have invested in a tax deduction plan in last financial years, it’s time check your audits. On this basis you will read TDS. It may be beneficial to take the following 11 options including mutual fund to avail tax relief and save TDS.
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Top 11 Easy TDS Saving Ways is as Follows
TDS is a method of tax collection by which a person deducts a certain amount at the time of payment / deposit to a particular person and the deducted amount is sent to the government account. This amount is calculated at the end of the financial year and deducted in the form of tax. If additional TDS is deposited, the amount is refunded to the person concerned.
1.Savings Account Interest
Tax exemption is available as per Section 80 TTA. Interest up to ₹.10,000 on a savings account is tax free. Interest on savings accounts, term deposits, recurring accounts, corporate bonds in banks, post offices, co-operative banks is not tax free. Individuals or Hindu Unified Family (HUF) can avail interest exemption up to ₹.10000
Tax exemption is available under Section 80D. Individual, family medical insurance premiums are tax deductible up to ₹.25,000. An additional discount of ₹.25,000 is also available on the medical insurance premiums taken out for the parents. Not only this, if you pay the installment of senior citizen parents, you get a discount of up to ₹.50,000. Up to ₹.5,000 can be claimed on the cost of advance health check-up.
Exemption is given under section 80. Loans for higher education are tax deductible. Tax exemption is given if you take educational loan for yourself, wife, children. This concession can be availed for up to eight financial years.
4.Rent without HRS
Tax exemption is available under Section 80GG. Those who do not get HRA in their salary get tax deduction on rent. The tax can be availed if the taxpayer, his wife, minors do not have any residential property. Can claim up to five thousand per month.
Section 80G gives tax relief. Donations to accredited organizations are tax deductible. Donations of more than two thousand cannot be made in cash. Sometimes a deduction of up to 100% and in some cases up to 50% is granted.
6.Electric Motor purchase
Section 80 EB gives tax relief. Loans for electric vehicles are tax deductible. On this basis, interest up to Rs 1.5 lakh is tax free. This claim can be made from April 1, 2020 under Section 80 EB. The loan should have been taken between 1st April 2019 to 31st March 2023.
Tax exemption is available under Section 80DD and 80U. If the taxpayer is disabled, tax relief of ₹.75,000 to ₹.1.25 lakh can be availed. A tax deduction of up to ₹.75,000 is for a physically and mentally handicapped person and a tax deduction of up to ₹1.25 lakh is available for a person with severe physical disability.
Tax exemption is available under Section 80 DDB. The taxpayer can avail tax relief on the medical treatment of the dependent. If you have a special illness, you can claim a deduction of up to ₹.40,000. A discount of up to ₹.1 lakh is available for the treatment of senior citizens. For this, it is necessary to show the medical treatment bill.
9.Tax Deduction Under Section 24
The interest on a home loan is tax deductible. This benefit can be availed up to two lakhs. Also, the principal amount of the home loan can be tax deductible under Section 80C.
Under Section 80C, a concession of up to ₹.1.5 lakh is available. There are several investment options available under 80C. Accordingly PPF, EPF, VPF, NPS, NSE, ELSS, SSY, SCSS.
Note: Equity Linked Savings Scheme funds (ELSS Mutual Fund). A diversified mutual fund with the benefits of lowest tax-saving lock-in of just 3 years. Exempt up to ₹ 1,50,000 from taxable income.
It is difficult to fit all the family in one policy. Therefore, insurance regulator Ida has appealed for a timely insurance plan.
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