Best Tax savings tricks of 2022 (Save more than 3 lakhs of tax)
1. Tax saving with NPS
2. Tax saving from investing in health insurance
3. Tax saving on medical expenses of a disabled person
4. Tax saving on repayment education loan
5. Tax saving on interest earned from savings account
Best tax savings techniques are given below do read them and save your tax. Happy reading ♥
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1. Tax saving with NPS
So let's get started. Additional tax saving with NPS under Section80CCD You can claim a tax deduction under Section 80C by contributing Rs. 1.5 lakhs yearly in NPS. Additionally, aside from that, you'll claim a tax write-off under Section 80CCD (1B) by contributing a further amount of Rs. 50,000in your NPS account. It means if someone falls under the 30percent income bracket , then the extra tax saving helps them save to Rs. 15,600 ontheir income tax. 4 percent education cess is also includedin this.
2. Tax saving from investing in health insurance
Tax saving by insurance premiums underSection 80D within the era of accelerating medical cost, healthinsurance has become vital for everybody . If you don’t have any insurance cover, then a medical emergency can cause negative impact on your financial life. Tax incentives are offered by the govt to encourage investment in insurance by more people. The insurance premium amount are often wont to claim tax write-off under Section 80D. You can claim tax cuts on the amount paid in form of premium for a standard health insurance policy, health insurance riders and top up healthcovers. An added advantage of this section is thatyou can get tax benefits on preventive health check-up expenses. However, it should be within the section limit. The limit on tax write-off under Section 80D depends on who is included within the insurance cover. This limit are often Rs.25,000, Rs.50,000, and Rs.75000 or Rs.1 Lakh, counting on things of the taxpayer’s family. If you purchase insurance for yourself andyour family excluding your parents, then you'll claim a tax write-off of up to Rs. 25,000on the premium paid. If even one person in your family is above the age of 60, the limit you'll claim is Rs. 50,000. Apart from this, if you purchase health insurancefor your parents, then there's a limit of Rs. 25,000 for non-senior citizen parentsand 50,000 for senior citizens. This limit is over and above your family limit. Let’s understand the deduction you'll claimwith an example. Let’s assume that Anil, who is a 35 yearold working professional, buys a health insurance policy. Anil, his spouse and dependent children are included during this policy. In this scenario, the limit of tax write-off are often up to Rs. 25,000 in a financial year under Section 80D. This limit includes preventive health checkupas well. Anil spends Rs.18,000 per annum for his healthinsurance premium and he also spends Rs.4,000 per annum for preventive health checkup. Tax deduction under Section 80D: Rs.22,000Now Anil felt that his oldster parents should even have insurance . Anil buys health insurance for his parentsand in this case, the limit under section 80D will be Rs. 75,000. This includes a limit of Rs. 50,000 for thepremium paid on the insurance for his parents and remaining Rs. 25,000 on the premium purchased the insurance policy of himself and his family.
3. Tax saving on medical expenses of a disabled person
Tax saving on medical expenditure of a disableddependent under Section 80DD A taxpayer can claim a deduction under Section 80DD if he/she takes care of a dependent disabled loved one . This deduction is obtainable to assist you're taking care of a disabled loved one who depends on you. Section 80DD defines disabled dependent familymembers which include wife, children, parents or siblings. In the case of HUF, any member of HUF canbe disabled dependent. In order to say deduction during this section,it is necessary that the disabled dependent has not claimed deduction under section 80U. The disabilities covered under this sectionare blindness, low vision, loco-motor disability, hearing disorder , retardation , mentalillness, autism and spastic paralysis . You can claim deduction on the following medicalexpenses: Expenses incurred on medical treatment, nursing,training and rehabilitation of the disabled dependent. The premium purchased the insurance policydesigned specifically for such cases . The deduction depends on the condition and seriousness of the incapacity of the dependent person. If the disability of the dependent personis at least 40% then one can claim a deduction of about Rs. 75,000 in a financial year. If the dependent person is a minimum of 80% disabled, then the taxpayer can claim up to Rs 1,25,000 tax write-off .
4. Tax saving on repayment education loan
Tax saving on repayment of education loanunder Section 80E You get tax break on the repayment of the interest component of the loan taken for education . This benefit is out there under section 80Eand there's no limit thereon . Tax deduction can be claimed by whoever ismaking the repayment, it could be the parents or the student. Taxpayers can claim tax deductions up to eight financial years from the year of commencement of interest repayment of the education loan, or till repayment of the whole interest, whichever falls earlier. For example, if you repay the education loanfor 6 years from the date of repayment, then tax write-off are going to be available just for aperiod of 6 years. You can repay your education loan after the8 year time period but you would not be able to claim the tax deduction after the 8th year.
5. Tax saving on interest earned from savings account
Tax Savings on interest earned on Savings checking account We all keep balance in our bank accounts andearn interest thereon .All individuals and HUFs can claim tax write-off on this interest. This deduction are often availed under Section80TTA. this is often for all taxpayers who aren't seniorcitizens. oldster taxpayers fall into Section80TTB. Now let's first see, what all sources areconsidered for interest earned- Bank bank account Post office Savings Account bank account of Cooperative Societies,who are into banking business you ought to keep this in mind that intereston FDs, RDs or other term deposits cannot be claimed for deduction under this section. the utmost deduction limit under this sectionis Rs. 10,000. this suggests you'll claim a deduction on the interest earned upto Rs 10,000 from your savings bank account . If you've many savings accounts then also you'll not claim deduction beyond Rs. 10,000 interest. The interest quite this amount are getting to be considered as income from others source and tax are getting to be levied. for instance , Ananth has 3 savings bank accounts. He earned interest of Rs.6,000, Rs.8000 andRs.12,000. the entire income from interest is Rs.26,000. But he can claim only Rs.10,000 for tax deduction under Section 80TTA. this suggests that the remaining Rs.16,000 will be treated as income from other sources and may be included in taxable income. Section 80 TTB This section was introduced on 1st April,2018. This was launched for the advantage of senior citizens who usually use the interest from their savings checking account and deposits as their income. Under this section one can claim up to Rs.50,000 as tax write-off .
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