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How To Save Income Tax? Check Multiple Ways Before Filing ITR

The deadline to file an income tax return is July 31. As the date is nearing, people are in a rush to file the same. But, do you know there are legitimate ways to save taxes? You can save it without making the investment. Yes, you read it right. Here are the ways by which one can save taxes.

Pawan Kumar

Updated Jul 3, 2024, 13:48 IST

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How To Save Income Tax? Check Multiple Ways Before Filing ITR (Image Source: Canva)

The deadline to file an income tax return is almost arrived. People are in a rush to file their ITR within the deadline. However, one can file it even after July 31 but with a penalty. Commoners are wondering to save their income tax.

How To Save Income Tax?

There are legitimate ways to save taxes. These are under the Income Tax Act of 1961. Here we have curated a list that will be beneficial in saving taxes without investment. One can save it even if they have not made specific tax-saving instruments.

Steps To Save Income Taxes

Here are some key ways by which you can save income tax.

Tuition Fees for Children

Parents can claim a deduction for tuition fees paid to any educational institution in India, up to Rs 1,50,000 per year. This applies to the full-time education of up to two children and includes play-school, pre-nursery, and nursery classes. However, development fees, donations, or similar expenses are not covered.

Education Loan

Section 80E allows deductions for interest paid on education loans for higher education. There is no upper limit on this deduction, and it can be claimed for up to eight years, starting from the year repayment begins.

Donations to Charitable Organizations

Section 80G provides deductions for donations made to approved charitable organizations. Depending on the organization, the deduction can be either 50 per cent or 100 per cent of the donation amount. When filing their tax return, donors must provide the recipient's name, PAN, address, and donation amount.

Medical Insurance Premiums

Section 80D allows deductions for premiums paid towards medical insurance for oneself, spouse, children, and parents. Individuals can claim up to Rs 25,000 per year for premiums paid for themselves and their family, with a higher deduction of up to Rs 50,000 available for senior citizens.

Home Loan Interest and Principal

Section 24(b) permits individuals to claim up to Rs 2 lakh per year for interest paid on home loans for self-occupied properties. Additionally, the principal repayment qualifies for a deduction under Section 80C. These benefits are available only under the old tax regime.

Rent Paid

Individuals living in rented accommodation can claim a deduction for the rent paid under Section 10. The deduction amount depends on the individual's salary and city of residence.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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