Save tax on Income for the A.Y.2023-24|For most people, paying income tax at the end of the tax year
is a difficult task. Much of the fuss revolves around scheduling insurance, rent, and other receipts in
such a way as to result in the lowest tax liability possible.
Therefore, Income tax planning doesn’t have to be a difficult task if you carefully consider every aspect of your income. While some of the tax-saving methods are very common, if you are in a higher tax bracket, you can turn to non-traditional methods to maximize your savings.
Invest more in the National Pension Scheme
In other words,
However, If you are an NPS subscriber, you may qualify for tax credits under section 80CCD(1) with a general cap of Rs. 1.5 varnish according to Sec 80 CCE. What you may not know is that you can claim an additional Rs 50,000 deduction under Section 80CCD(1B) Income Tax. So, to save on taxes, increase your contribution to the national pension system.
Deductions from the education of children
For instance, If you are a parent, you can claim a deduction from the amount spent on school, university, college or any other educational institution. During the financial year, the maximum tuition deduction that can be claimed along with deductions for insurance, reserve fund, pension and other investments is Rs 1.5 lakh. This exemption is for a maximum of 2 children.
A wedding is a big event in India. The couple receives many gifts from guests. Such gifts are exempt from taxation in accordance with section 56(2). Gifts received on the wedding day, whether in the form of a gift, cash or check, are tax-free. This means that you can claim tax relief on gifts received from friends and family.
Channel your investments through your parents
Seniors are eligible for special tax credits. You can redirect your investment income if your parents are on a low income. So if you earn Rs 1 Lakh in interest, instead of including it in your taxable income for the year, you can transfer the money to them without paying taxes. You can donate this money to your parents tax-free. They can reinvest in lucrative seniors schemes such as Seniors FD, Seniors Savings Scheme and others.
Money spent on donations/charities
Tax deductions can be claimed for charities/donations and charitable endeavours. Depending on the purpose, some donations are eligible for a 100% deduction while others are eligible for a 50% deduction. However, you should keep in mind that only donations made in cash or donations by check are eligible for deductions.
PS: Cash allowed up to INR 2000
Phone and internet expenses
In accordance with Rule 3(7)(ix), telephone reimbursement provided to employees is not taxable. If your office work requires the use of a mobile/telephone/internet connection, you are entitled to a full exemption from billing.
Paying for parental health and health insurance
Section 80D allows a taxpayer to claim a deduction of up to INR 25,000. You can pay the insurance premium for yourself and your family. If you pay health insurance premiums to your parents, you may qualify for an additional u/s 80D tax credit.
Also, if your parents are not insured by any policy, you can still claim up to Rs.50,000 for medical expenses incurred during the year.
Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24
Feature of this Excel Utility:-
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4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2022-23 (Update Version)
5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2022-23