Income tax calculator Top 5 tax saving tips other than Section 80C benefit

Income tax calculator: After the announcement of the budget proposal for FY2023_24, middle-class salaries, and other earning individuals are busy calculating their tax savings options, which they can exercise beyond the rs 7 lakh annual limit. 

However, these benefits would only be applicable under the old income tax regime. Those who want to claim these benefits need to choose the old tax regime because, from 1st April 2023, the new income tax regime would be the by-default tax regime for an earning individual.

NPS: In the National Pension System {NPS} scheme an earning individual is given additional rs 50,000 deduction under Section 80CCD {1B}. If an earning individual has exhausted its 1.50 lakh per annum investment limit.

 He or she can claim an income tax rebate on one's investment in NPS account under this section In this section one can claim tax exemption on up to rs 50,000 investment in one financial year

Health Insurance Premium: Under section 80D of the income, tax act a taxpayer can claim a tax rebate premium paid on health insurance during the assessment cycle The rebate ranges from 25000 to 1 lakh in one financial year.  

a taxpayer can claim on tax rebate on health insurance premiums paid up to 25000 if he or she is below 60 years of age. If the taxpayer is paying the health insurance premiums of their parents, who are below 60 years of age, then, in that case, the taxpayer can claim an additional tax rebate on up to 25000 health insurance paid for its parents.

In the case of parents being senior citizens then, in that case, this amount limit goes to 50000 per annum however in both cases both parents and child can claim a tax rebate on the same health insurance premium. However, if the citizen is a senior citizen then in that case is Rs25000 annual limit goes upto Rs1lakh

Hence, if a taxpayer is a senior citizen and is paying the health insurance premiums for their parents as well, then, in that case, the taxpayer would be able to claim a tax rebate of up to rs 1lakh {50,000 for himself and 50000 for his parents} under section 80D

Tax rebate on home loan: A taxpayer who is paying home loan EMI he or she can claim a tax rebate on up to rs 2lakh home loan interest paid in the assessment cycle however the home loan borrower should be living in the unit or the unit has to be self-occupied.

Interest on savings account deposits: Under section 80TTA  a saving account depositor can claim TDS exemption on up to 10000 interest incurred in a single financial year. 

This amount is applicable to all bank saving accounts so if someone has more than one saving account then the taxpayer is advised to calculate the entire savings account with the interest of all bank accounts in the case of senior citizens the non-taxable limit is 50,000 under section 80TTB.

Donations to charitable institutions: Under section 80CCC if a taxpayer has paid a donation to an approved charitable institution, then in that case one can claim tax exemption under section 80CCC. However, in case of a donation of cash the limit is capped at Rs2000 so in case of a donation in cash is exceeding one should pay via bank cheque only paying through a cheque won't work as you need a stamped receipt of donation by the trust with mention of its address PAN card with the name of the trust written on it.

also, check budget(2023) relaxation for middle-class people  BY NIRMALA SITARAMAN 

Budget relaxation for Middle-Class People: During the budget session, 2023 Finance minister Nirmala Sitaraman shares the details about how can middle-class people will get relaxation from high tax and no tax will be applied up to 7LAKH rupees LEARN MORE