As January And February are almost passed & tax has already been deducted for many salaried employees, still there are various ways available for you to invest and claim tax refund from the IT department. There are multiple deductions and exemptions available in the Income-tax Act, 1961 which can benefit you to save your tax to be deducted in March 2024 and also to claim refund in July.
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Take a look at tax deductions that you can claim under the old and new tax regimes.
Tax Saver Under 80C:
A maximum deduction of Rs 1.5 lakh per financial year is available for any individuals under section 80C. The 80C is available only for those taxpayers who opt for the old tax regime.
This is the most popular section among individual taxpayers to save their tax as it has a variety of schemes available. Some of the schemes under which you can invest are Public Provident Fund, Employees’ Provident Fund (EPF), equity-linked savings scheme (ELSS), tax-saving fixed deposits (FD), National Savings Certificate (NSC) etc.
Section 80 CCD(1B)
Another section for better investment is 80CCD(1B). It has one of the most popular investment options known as the National Pension System (NPS), where one can claim deductions up to Rs 50,000 additional over and above the deduction under section 80C.
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Section 80 CCD (2):
If you contribute to the individual’s NPS account then you can take advantage of tax saving under this section. For private sector employees maximum deduction is 10% of their salary which consists of basic plus dearness allowance (DA) whereas for government employees the claim can go upto up to 14% of salary as a deduction under section 80 CCD (2).
The 80CCD (2) deduction is available under the new and old tax regimes .
Section 80D:
If your limit of 150000 under 80C is full and you want to save more taxes and also want to secure the health of yourself and your family members section 80D is the best option to save tax.Where in you need to buy health insurance policy for self, spouse, dependent childrens or for your parents. Deduction under this section is only available under the old tax regime.
House Rent Allowance (HRA):
If you are living in a rented house or planning to shift in a rented house before 31st March and also HRA is part of your salary structure, you can opt for tax saving. However HRA is only available under the old tax regime.
Also Read– Want To Save Tax Before March 31 Deadline? Know Best Tax Saver Investment Schemes Under 80C
Deduction For Home Loan’s Interest:
If you have taken home loan, interest over the home loan can be claimed under section 24 (b) which is a separate section and claim part from your 80C deductions.
