Quick Answer: How Can I Save My Tax After 80c?

How can I save my income tax after 80c?

In this article, let’s take a look at the tax-saving options other than Section 80C to turn you into a smart tax saver.Section 80CCD: National Pension Scheme.

Section 80D: Payment of health insurance premium.

Section 80E: Repayment of an education loan.

Section 24: Interest payment of a home loan.More items…•.

How can I save tax after 1.5 lakhs?

The most popular avenue for tax-saving is section 80C of the Income Tax Act. Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount.

Is PF part of 1.5 lakh investment?

The maximum limit of Section 80C is Rs 1.5 lakh per financial year and there are several investments and expenses that are eligible for tax benefits under this section including PF contributions of an employee.

How can I save tax if I earn 10 lakhs?

There are possible components for tax deductions which can help you save taxes:Annuity Plans.Child Tuition Fees.Employee National Pensions Scheme (NPS)Equity Linked Savings Scheme Investment.Fixed Deposits.Housing Loan Interest.Interest on Saving Account Deposits.Interest on the loan is taken for Residential House.More items…

How can I reduce my taxable income?

The simplest way to reduce taxable income is to maximize retirement savings. Those whose company offers an employer-sponsored plan, such as a 401(k) or 403(b), can make pretax contributions up to a maximum of $19,500 in 2020 ($19,000 in 2019).

Can I invest more than 1.5 lakhs in 80c?

1.5 Lakh per account in one FY. So, there is no issue if you invest 1.5 Lakh in yours as well as your daugher’s PPF Account. The limit of ppf investment is per account. … Your total investment upto 1.5 lakhs will only be allowed as deduction u/s 80C.

Is standard deduction allowed in new tax regime?

The answer is actually quite simple. Anyone claiming tax exemptions and deductions of more than Rs 2.5 lakh in a year will not gain from the new structure. This threshold of Rs 2.5 lakh includes the standard deduction of Rs 50,000 for which no investment is required.

Can I change from new tax regime to old?

Effectively, you can switch between new and old tax regime at the time of filing ITR. … CBDT also clarifies that even if one opts for New Tax Regime and the same intimation is made to employer or Deductor, it shall be only for the purposes of TDS during the previous year and cannot be modified during that year.

How can I save tax on my new tax regime?

If you’re shifting to new regime, reconsider tax-saving productsThe case for one-time tax-saving investment.Equity-linked savings scheme (ELSS): Investment in ELSS funds, which are diversified equity funds, offers deduction up to ₹1.5 lakh under Section 80C of the Income-tax Act, 1961. … Public Provident Fund (PPF): The other investment product you can look at is PPF.More items…•

What is 80c limit?

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.

What are the best tax saving options?

Best Tax Saving Investment Options Under Section 80CInvestmentReturnsLock-in PeriodUnit Linked Insurance Plan (ULIP)Returns vary from plan to plan5 yearsPublic Provident Fund (PPF)7%-8%15 yearsSukanya Samriddhi Yojana8.5%N/ANational Savings Certificate7%-8%5 years5 more rows

What reduces AGI?

Some deductions you may be eligible for to reduce your adjusted gross income include:Alimony.Educator expense deduction.Health savings account contributions.Retirement plan contributions, like IRA or self-employed retirement plan contributions.For the self-employed, health insurance and one half of S/E tax.More items…

What if I invest more than 1.5 lakhs in PPF?

16. What if I deposit more than 1.5 lakh in PPF? The maximum deposit limit in a PPF account is of Rs 1.5 lakhs and any amount beyond this limit will be rejected at the time of transfer.

What is the formula to calculate taxable income?

* Subtract the Deductions under Chapter VI-A from your Gross Total Income. The result will be your total taxable income. After calculating your total taxable income, apply the tax rates relevant for the financial year for which the income has been calculated to compute your tax liability.

Can I invest more than 1.5 lakhs in ELSS?

Tax saving mutual fund schemes or equity linked saving scheme (ELSS) are one of the most preferred options to save tax for most individuals. It comes with a three-year lock-in period. … Although no rule bans investments in excess of Rs 1.5 lakh per year, one should not invest money in excess of what is required in ELSS.

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

What is the 80c limit for 2019 20?

The total deduction under Section 80C is INR 150,000 in FY 2019-20 even if investment is made between April 2020 to June 2020. If I make a tax saving investment in May 2020 from income earned in the same month then will it qualify for claiming deduction for FY2019-20?

How can a salaried person save tax?

First you can claim standard deduction of Rs 50,000 for FY 2019-20. You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues. You can also invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.