Finance Desk – There are several strategies that can significantly lower your taxes. From taking advantage of home loan deductions to investing in health insurance, here are four straightforward methods to save on taxes.
Invest in a Home Loan
You can save up to ₹1.5 lakh on the principal amount under Section 80C of the Income Tax Act. Plus, you can also save up to ₹2 lakh on the interest you pay on the home loan under Section 24B. That adds up to ₹3.5 lakh in total tax savings.
Get Health Insurance
You can get a tax rebate of up to ₹25,000. And if the insurance is for your elderly parents, the rebate goes up to ₹50,000. So,a total tax rebate of up to ₹75,000.
Open an NPS Account
By starting a Tier-2 account (but remember, you need to have a Tier-1 account first), you can get a tax rebate of up to ₹50,000 on your investment.
Save Through Tax-Saving Fixed Deposits
You can save taxes on up to ₹40,000 of interest earned from these FDs under Section 80C. Remember, no tax will be deducted at source on the interest if it is less than ₹40,000 in a year. (Does not apply to senior citizens)
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