Income Tax Return (ITR) for FY 2023-24 without a late fee is July 31. In such a situation, people are trying to find new ways to save their high-income tax. With the onset of April, the companies have also started asking their employees for information about investments and other savings regarding income tax. You may also have received mail regarding investment declaration from the company. Let us take a look at some of the ways through which you can save the income tax worth Rs 5 lakh. Under Section 80C of the Income Tax Act, there is no income tax on investments up to Rs 1.5 lakh. In this, you can save money by investing in mutual funds like ELSS. Tax exemption can be availed on investments in PPF, Sukanya, tax saving FD and home loan principal amount.
Home Loan Interest
If you want to buy a house, then this is the best time. Under Section 24B of Income Tax, tax exemption up to Rs 2 lakh is also available on home loan interest. In this way, you get a total tax exemption of Rs 3.5 lakh on a home loan only.
Health Insurance
You get a tax rebate of up to Rs 25,000 on premiums for insuring yourself and your family, while you get a tax rebate of up to Rs 50,000 on health insurance for elderly parents. In this way, a total discount of Rs 75,000 is available on health insurance.
NPS account
If you open a Tier-2 account under the National Pension System (NPS), then you can get a tax rebate on investment up to Rs 50,000. It has to be kept in mind that a Tier-2 account can be opened only if you have a Tier-1 account.
Benefit from FD interest
Under Section 80C of Income Tax, if you invest in a tax-saving FD, then you can get an income tax exemption of up to Rs 40,000 on the interest received on it. Senior citizens are not included in it. The TDS will not be deducted if the interest earned on an FD in a financial year is below Rs 40,000.
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