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Have You Explored All Choices To Save Tax For FY 2021-22? ★ ApnaPlan.com – Private Finance Funding Concepts


Everybody hates paying taxes and all the time are on lookout for Choices to Save Tax. Nonetheless the revenue tax guidelines in India are sophisticated and its changing into extra so in recent times. Finances 2020 launched the idea of New Tax Regime, then there have been a number of modifications to the legal guidelines in 2020. Fortunately Finances 2021 has been much less occasion full with very minor tweaking to the revenue tax guidelines. On this submit we attempt to discover – What’s the Most Revenue Tax I can save for FY 2021-22? 

To make it easy, now we have listed all of the tax saving tax sections within the desk under. It will provide help to verify when you’ve got taken benefit of the related part. We now have additionally printed eBook which tells you about all choices to save lots of tax which can be out there to a person (each salaried & enterprise).

Choices to Save Tax for FY 2021-22

Broadly talking If you’ll be able to avail all these sections you may make greater than Rs 14 Lakhs revenue tax free. However sadly not all sections could be relevant for you. The desk under provides the main points of all of the tax exemptions out there:

S. No. Tax Sections Description Most Tax Exemption Restrict (Rs.)
1 80C/ 80CCC/ 80CCD Funding in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance coverage, SCSS, SSA and NPS. Additionally consists of Residence Mortgage Principal reimbursement, Tuition Charges, Stamp Responsibility. Finest Tax Saving Investments u/s 80C 1,50,000
2 80CCD(1B) Funding in NPS (Must you Make investments Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?) 50,000
3 24 Curiosity paid on Residence Mortgage for Self occupied houses. You’ll be able to declare declare Tax Profit on each HRA & Residence Mortgage – Know How? 2,00,000
3 A 80EEA Extra Tax Deduction of Rs 1.5 lakhs on house loans on buy of reasonably priced house (topic to sure circumstances) 1,50,000
4 80EEB Extra tax deduction of Rs 1.5 lakhs for cost of curiosity on auto mortgage taken for buy of electrical automobiles 1,50,000
5 80E Curiosity paid on Training Mortgage. No Restrict – Rs 50,000 is simply an assumed worth Tax Profit on Training Mortgage (Sec 80E) 50,000
6 80D Premium cost for medical insurance coverage for self and fogeys. Consists of Rs 5,000 restrict for preventive well being checkup Making Sense of Tax Profit on Well being Insurance coverage u/s 80D 60,000
7 80DDB Therapy of Severe sickness for self and dependents (Restrict of Rs 1,00,000 for Senior Residents and Rs 40,000 for others) 80,000
8 80U Bodily Disabled Tax payer (Rs 75,000 for 40% to 80% incapacity and Rs 1,25,000 for greater than 80%) 1,25,000
9 80DD Bodily Disabled Dependent (Rs 75,000 for 40% to 80% incapacity and Rs 1,25,000 for greater than 80%) 1,25,000
10 80G Donation to accredited charitable funds like Prime Minister Reduction fund, and so forth (assumed worth) 50,000
11 80GGA  Donations for scientific analysis or rural growth (assumed worth) 50,000
12 80GGC Donations to political events (assumed worth) 50,000
13 A 80TTA Curiosity obtained in Financial savings Account Which financial institution gives highest rate of interest on financial savings account? 10,000
13 B 80TTB Curiosity Revenue for Senior Residents Solely Study all about Part 80TTB 50,000
13 C 10(15)(i) Curiosity as much as Rs 3,500 for single holder account and as much as Rs 7,000 for joint account in Put up Workplace Saving Account 7,000
14 80GG For Hire Bills who do have HRA element in wage Declare Tax Profit for Hire Paid u/s 80GG? 60,000
Most Tax Exemption Attainable (Rs.) 14,37,000
Choices to Save Tax for FY 2021-22

The Drawback

Although 14 Lakhs sounds large quantity however most individuals would avail solely few of the above. Right here is the rationale:

  1. Rs 1.5 Lakhs exemption for donation: Individuals donate for a trigger and their ardour/empathy and to not save taxes. It’s simply that tax exemption sweetens the deal!
  2. Rs 2.5 Lakhs exemption on account of tax payer or his dependent being bodily disabled. This can be a a lot wanted exemption however applies to only a few tax payers.
  3. Rs 1,00,000 deduction for remedy of significant sickness is one thing that only a few tax payers would benefit from.

So out of Rs 14 lakhs, round 5 lakhs exemption could be claimed by only a few tax payers and in particular circumstances solely.

Most tax payers even after utilizing all of the tax saving sections would be capable of declare tax profit as much as Rs 6  to six.5 Lakhs.

Choices to Save Tax for FY 2021-22

Tax Saving Sections Choices to Save Tax for FY 2021-22

Under is the recap of all tax saving sections:

Part 80C/80CCC/80CCD: Funding in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance coverage, SCSS, SSA and NPS. Additionally consists of Residence Mortgage Principal reimbursement, Tuition Charges, Stamp Responsibility (Finest Tax Saving Investments u/s 80C)

Part 80CCD(1B): Funding in NPS (Must you Make investments Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?)

How a lot Taxes you Must Pay this 12 months? Obtain Our Revenue Tax Calculator to Know your Numbers

Have you learnt how a lot tax you might want to pay for the 12 months? Have you ever taken good thing about all tax saving guidelines and investments? Must you use the “NEW” tax regime or proceed with the previous one? In case you might have all these questions simply Obtain the Free Excel Revenue Tax Calculator for FY 2021-22 (AY 2022-23) and get your solutions.

Part 24: Curiosity paid on Residence Mortgage for Self occupied houses. Finances 2017 has capped the restrict to Rs 2 Lakhs for each rented and self-occupied home. You’ll be able to declare declare Tax Profit on each HRA & Residence Mortgage – Know How?

Part 80EEA: Extra exemption on Residence Mortgage Curiosity for First time house consumers. (Finances 2019)

Part 80EEB: Extra tax deduction of Rs 1.5 lakhs for cost of curiosity on auto mortgage taken for buy of electrical automobiles. (Finances 2019)

Part 80E: Curiosity paid on Training Mortgage. No higher/decrease Restrict! (Tax Profit on Training Mortgage (Sec 80E))

Part 80CCG: Finances 2017 eliminated this tax exemption for RGESS

Part 80D: Premium cost for medical insurance coverage for self and fogeys. Additionally consists of Rs 5,000 restrict for preventive well being checkup (Making Sense of Tax Profit on Well being Insurance coverage u/s 80D)

Part 80DDB: Therapy of Severe sickness for self and dependents (Restrict of Rs 80,000 for particular person above 80 years, Rs 60,000 for particular person above 60 years and Rs 40,000 for relaxation)

Part 80U: Bodily Disabled Tax payer (Rs 75,000 for 40% to 80% incapacity and Rs 1,25,000 for greater than 80%)

Part 80DD: Bodily Disabled Dependent (Rs 75,000 for 40% to 80% incapacity and Rs 1,25,000 for greater than 80%)

Part 80G: Donation to accredited charitable funds like Prime Minister Reduction fund, and so forth

Part 80GGA: Donations for scientific analysis or rural growth

Part 80GGC: Donations to political events

Part 80TTA: Curiosity obtained in Financial savings Account

Part 80TTB: Curiosity revenue for Senior Residents. They will use both 80TTA or 80TTB however not each collectively.

Tax Free Wage Elements

There are elements in wage that are absolutely or partially tax exempt. For instance HRA is tax exempt should you fulfill sure circumstances. You’ll be able to have the whole record within the submit: Will need to have Tax Free elements in Wage.

Part 80GG: In case you don’t obtain HRA from employer or are self-employed however NO home in your identify (Declare Tax Profit for Hire Paid u/s 80GG)

We hope this is able to provide help to to maximise your revenue tax financial savings for FY 2021-22!





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