How to save tax without Home loan
To save money on taxes, every one of us must invest in tax-saving financial instruments like the Public Provident Fund (PPF), the National Pension System (NPS), the National Savings Certificate (NSC), tax-saving fixed deposits, life, and health insurance policies, among others. In addition to them, there are still some more ways that can lower our tax expenses without requiring any financial outlay. I am talking about the most valuable way how to save tax without home loan in the downline.
1. Deduction for Medical Expenses
You can deduct the cost of health insurance premiums for yourself, your spouse, your dependent children, and your dependent parents under Section 80D. Everyone in your family should have health insurance, but even if they don’t, you may still deduct up to Rs 5,000 for the cost of preventative health checkups. Additionally, if the senior citizen is not covered by health insurance, you may deduct up to Rs 50,000 for healthcare costs you pay for yourself as a senior citizen or for your elderly parents. Medical expenses are also the answer to this question of how to save tax without home loan.
2. Deductions for children’s tuition fees
A significant percentage of our money is spent on expenses for the education of our children. So it makes logical to make the most of the tax advantages related to these charges. Section 80C of the tax code allows parents to deduct up to Rs 1.5 lakh in tuition costs for their children’s education. However, this only applies to the tuition fees for a taxpayer’s first two children (i.e. a couple consisting of two individual taxpayers can avail of this benefit for up to 4 children).
3. Hike your EPF contributions with VPF
For many salaried people, the Employees’ Provident Fund serves as the foundation of their retirement savings. They must contribute at least 12% of their basic pay and dearness allowance to EPF, although they are allowed to contribute more under the Voluntary Provident Fund program (up to 100% of their basic pay and DA). As the name implies, a voluntary contribution (VPF) is one made in addition to the required EPF contributions.
4. By paying rent
If you are employed and renting an apartment, you can reduce your tax liability by paying the landlord’s rent. If your employer provides you with a home rent allowance (HRA), you may be able to claim an exemption for the rent you have already paid under the terms of Section 10(13A) of the Income Tax Act. According to Section 80GG of the I-T Act, rent paid for property used by an individual as his own house can be deducted up to Rs 5000 per month for other people and in situations where the employee does not receive HRA (subject to prescribed conditions). Paying rent is a part of how to save tax without home loan.
5. Make Charity Donations
The government promotes charitable giving and supports the underprivileged. Under Section 80G of the ITA, contributions to the PM Relief Fund, officially recognized NGOs or political parties are 100% tax deductible. Donations to government funds for Swachh Bharat Kosh, the Clean Ganga Fund, and the National Fund for Control of Drug Abuse are also listed under the act’s most recent revision. Charity donation can be your best option. if you find out how to save tax without home loan
6. Save Tax through Education Loan
On the interest paid on a student loan, there is a full tax exemption available. The deductible sum has no upper limit. An exemption is not offered on the repayment of the principal amount, unlike mortgage loans. To get the most tax-saving benefits from loans, try to speak with someone who has experience in investment banking.
7. Account for Personal Expenses that save Tax
Additionally, you are entitled to tax deductions for a number of personal costs, Some Points on how to save tax without home loan.
- tuition fees for self and children
- insurance premium for oneself, one’s spouse, or one’s kids
- treatment of specified diseases
- medical treatment of handicapped dependents
8. Plan a Leave Travel
You are eligible to claim tax deductions if your company provides you with a leave travel allowance. However, only twice every four years are allowed for such claims. Additionally, the trip must be within India, and the most that may be claimed is for an AC Tier 1 rail ride or an economy-class flight.
9. Plan for Long Term Capital Gains
If you reinvest the earnings from the sale of a long-term asset you own and own, you may be excluded from paying capital gains tax. For an asset to be considered a long-term asset, you must have owned it for more than three years. If you kept equities shares and mutual funds for at least a year, long-term profits from these investments are also tax-exempt.
10. Money Spent on Donations to Political Party
Tax deductions for money spent making a gift to a political party have no maximum limit. These deductions fall under Section 80GGC. Such a contribution would be fully deductible. I hope you have read full article how to save tax without home loan.