Income Tax Return Update: If income tax return is filed under the old tax regime, then income tax exemption can be obtained under section 80C under the Income Tax Act. Under this section, people can invest in some schemes and save tax.
Income Tax Update: With the increase in the income of the people, they also have to pay tax to the government. Every year people have to file income tax and disclose their earnings. Along with this, tax has to be paid on the taxable income of the people. Most of the people want to save a little in their tax. In such a situation, today we are going to tell here that when you file income tax return next year, how tax saving can be done under the old tax regime. Let’s know about it…
Tax Saving Under Section 80C
If income tax returns are filed under the old tax regime, then income tax exemption can be obtained under section 80C under the Income Tax Act. Under this section, people can invest in some schemes and save tax.
Section 80D
Premium paid by any means other than cash to insure the health of self, spouse and dependent children is eligible for deduction up to Rs 25,000 from your taxable income. Paying premiums on senior citizen parent’s health policies entitles you to an additional deduction of Rs 30,000 from your taxable income, helping you save more tax. This limit covers the expenditure on preventive health check-up up to Rs.5000.
By depositing rent receipts
If you are living in a rented accommodation and receive House Rent Allowance (HRA) from your employer, you can claim deduction under section 10(13A). The least of the following three shall be allowed as exemption from taxable income before computing the tax on the total income.
Donation
Donations made to certain relief funds and charitable organizations are eligible for deduction under section 80G. However, any donation made in the form of items like food items, medicines etc. is not eligible for deduction. You can claim tax deduction under section 80G only if you have donated through cheque, demand draft or cash (no deduction is allowed if the donation in excess of Rs. 2,000 is made by means other than cash) are not allowed). Also, contribution in kind is not eligible for tax deduction.
