How Can I Save My Income Tax Other Than 80c?

What is 80c limit?

According to the section 80CCE, the maximum aggregate deduction that can be claimed under section 80C, section 80CCC and section 80CCD (1) cannot exceed more than Rs 1.5 lakhs.

Section 80CCD.

This section allows deduction from gross total income for contributions made to pension schemes of the Central Government..

Are you filing return of income under seventh?

The income tax forms for the AY2021 has been amended to take a declaration from the taxpayer to state that if he or she is filing the return under the seventh proviso to section 139(1) declaring his or her gross total income is below the threshold limit of ₹2.5 lakh in case of individual below 60 years of age, ₹3 lakh …

How much of home loan is tax deductible?

The proportion of home loan interest that you can deduct is usually based on the dedicated work floor space in your home. For example, if you’re using 20% of the floor space, you may be entitled to claim 20% of your home loan interest as a tax deduction.

How do I claim my home loan on my taxes?

Under section 80C of the Income Tax Act, you get a deduction for the principal (of the loan) repaid up to Rs 1.5 lakh a year and the interest paid is deductible up to Rs 2 lakh per annum under section 24.

How can I save tax beyond 1.5 lakhs?

I. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount. This, in effect, reduces your taxable income and reduces your tax liability.

How can I save my tax without a home loan?

The amount paid as Repayment of Principal Amount of Home Loan and Amount paid as Stamp Duty & Registration Fee is also allowed as tax deduction under Section 80C even if the you have not taken Loan.

How do you calculate total gross income?

GTI = TI + deductions under Section 80 So, GTI is the total of all the heads of income while TI is GTI minus the deductions. To calculate GTI, you add the following: Income from salary: This includes the earning from employment.

How can I reduce my taxable income?

The simplest way to reduce taxable income is to maximize retirement savings. Both health spending accounts and flexible spending accounts help reduce tax bills during the years in which contributions are made.

What is the formula to calculate taxable income?

Your Adjusted Gross Income (AGI) is then calculated by subtracting the adjustments from your total income. Your AGI is the next step in figuring out your taxable income. You then subtract certain deductions from your AGI. The resulting amount is taxable income on which your taxes are calculated.

What are the best tax saving options?

Best Tax-Saving Investments Under Section 80CInvestmentReturnsLock-in PeriodELSS Fund15%-18%3 yearsNational Pension Scheme (NPS)12%-14%Till RetirementUnit Linked Insurance Plan (ULIP)Returns vary from plan to plan5 yearsPublic Provident Fund (PPF)7%-8%15 years5 more rows•Oct 14, 2020

Can I invest more than 1.5 lakhs in 80c?

Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act.

What is the 80c limit for 2019 20?

First you can claim standard deduction of Rs 50,000 for FY 2019-20. You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues.

What is 80c exemption?

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.

How do I calculate total income?

To determine gross monthly income from salary, individuals can divide their salary by 12 for the months in the year. To determine gross monthly income from hourly wages, individuals need to know their yearly pay. They can do so by multiplying their hourly wage rate by the number of hours worked in a week.

What are the different ways to save tax?

Below-enlisted are the 7 best tax saving options other than Sec 80C.National Pension Scheme (NPS)Interest on education loan (Section 80E)Rajiv Gandhi Equity Savings Scheme (Section 80CG)Home Loans.House rent allowance (Section 80GG)Health Insurance (Section 80D)Medical treatment under Sec 80DDB.More items…•

Is FD tax free?

The interest earned under an FD is taxable under “income from other sources”. The amount invested under 80C of the Income Tax Act is exempt but interest earned under such investments is taxable. … It means if the interest earned from a company deposit exceeds ₹ 5,000, the investor is liable for a TDS it.

How can a salaried person save tax?

First you can claim standard deduction of Rs 50,000 for FY 2019-20. You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues. You can also invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.

How do you calculate income tax for the financial year 2020 21?

At this point, the income which is still chargeable to tax is Rs 7,90,000. From point 4, Rs 2.5 lakh (Rs 10 lakh minus Rs 7.5 lakh) will be taxed at 15 per cent and the tax liability is Rs 37,500….S. No.Income slabsIncome tax rate (%)6Between Rs 12,50,001and Rs 15 lakh25%7Above Rs 15 lakh30%5 more rows•Oct 23, 2020

Is it good to take mortgage to save tax?

Tax benefit for taking a housing loan As per income tax rules, Shamit can claim a tax deduction of up to Rs 1.5 lakh under Section 80C for the principal amount paid in a financial year. Apart from this, he can claim up to Rs 2 lakh on the interest amount under Section 24 every year.