We incur several regular Expenses which make us eligible for tax benefits but we fail to utilize them due to our less knowledge about it. Here we will discuss about some expenses which will help you to save tax.
1) House Rent : IF we are on rental, pay some amount as rent to our landlord, then you will get tax benefit. Some employee gets HRA (House Rent Allowance) which helps to get income tax deductions. But if you are not getting HRA break-ups then you can also save tax as per provision under Section 80GG.
2) Travel Expenses : Income Tax gives tax rebate on conveyance @ 1600/- per month for office goers as Conveyance Allowances. Apart from this you can also enjoy tax saving benefit on LTA (Leave Travel Allowances) which can be claimed for two journeys in a block of 4 years. Expenses incurred by you & you family on travel for which your employer gives LTA can be claimed as deduction.
3) Medical Expenses : These expenses are a regular part of everybody's life. For this employee can get benefit of medical allowance allowed by their employee. Apart from this tax laws also allows some tax gains towards money spend on medical insurance & preventive health checkup. Limit of deduction is upto Rs.60000/- under Section 80D, if premium amount not make in cash.
4) Tuition Fees : To provide education we give tuition to our kids. IT Laws provides you opportunity to compensate the expenses you incur on your kids tuition fees by reducing your tax liability. This deduction can be claimed under Section 80C of IT Act.
5) Donations : If your kind hearted & God believer and doing some donations than this habit also helps you some in your tax liability. Cash Donation upto Rs.2000/- only and above by cheques/DD/Transfer to charitable Trust / Organisation will help you to save tax under section 80G.
6) Pension Fund : If your employee deduct your salary for Pension Fund contribution which is good for your future will also help you in tax saving. If your company not register with PF Scheme then you can opt some other Pension Fund Scheme for investment and future return.
7) Repayment of Home Loan : You have taken a home Loan and worry about home loan burden and taxes. Then you should be happy that burden of your home loan EMI can reduce the burden of taxes. You can get the benefit on Repayment of both Principal Amount and Interest Amount components of your installments. You can get a deduction on home loan repayment under section 24 of IT Act and a deduction on Principal amount under section 80C of Income Tax Act.
8) Repayment of Education Loan : Maintaining positions & for promotion higher qualification and up-gradation in it is must. Due to rising costs of educational courses, people often go for education loans when it comes to higher education. Just like deduction available on tuition fees, your education loan EMI also bring tax benefits to you.
Some Expenses are good. Above these expenses helps you to fulfill your dreams and reduce your tax burden, so don't worry about this.
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