Income Tax Saving 2022: If planned properly, salaried persons can save a lot of money through various avenues available for tax savings under the Income Tax rules. While most of the taxpayers are aware of popular options like tax-saving Fixed Deposit, PPF, provident funds, HRA, deduction against home loan interest, there are several less popular, or rather uncommon ways, available. Take a look at five of them:
1. Re-route investment through senior citizen parents
As per the Income tax rules, senior citizens are provided with several tax benefits. According to tax2win, you can gift money to your parents tax-free. Subsequently, your parents can reinvest this money in various attractive senior citizen schemes like Senior Citizen Fixed Deposit, Senior Citizen Savings Scheme etc.
You can use this option to re-route your earnings from investments. However, your parents should have a low income. Otherwise they will end up paying tax. For example, if you earn Rs 50,000 interest on investment, this amount can be transferred to your parents tax-free.
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2. Increase contribution to National Pension System
An NPS subscriber is eligible for additional Rs 50,000 deduction under Section 80CCD(1B) in a financial year. This deduction is above the Rs 1.5 lakh deduction allowed under Section 80C of the Income Tax Act.
3. Save tax against on expenses for telephone and internet
Telephone reimbursement provided to employees is not taxable under Rule 3(7) (ix) of the Income Tax Rules. So you can save tax against mobile/telephone and internet expenses if your work requires the use of these facilities. However, you will have to submit original bills to your employer to enjoy this tax-saving facility.
Read more:ITR Update: Income Tax refunds worth about Rs 1.83 lakh crore issued to 2.07 crore taxpayers
4. Save tax on payments for parents health and health insurance premium
Under Section 80D, taxpayers are allowed to claim a deduction of up to Rs 25,000 against payment of health insurance premium for self and family. Additional deduction under this section is allowed. If paying medical insurance premium for parents then you can claim an additional tax deduction u/s 80D.
If parents are below 60 years then up to Rs 25,000 deduction can be claimed.
If parents are above 60 years and above then up to Rs 50,000 deduction can be claimed.
Moreover, you can claim deduction up to Rs 50,000 for medical expenses made during the year if you parents are senior citizens and not covered under any health insurance policy.
5. Save tax on charity/donation
You can claim deduction against donations to charitable institutions. Some donations are eligible for up to 100% deduction, while others are eligible for 50% deduction. According to tax2win, only donations made through cash ( upto Rs 2000) or through cheque are eligible for tax deduction.
You should consult your tax advisor to explore the above and other uncommon ways of saving tax.
