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How to save maximum money while filing your Income Tax Return

When an earning individual goes for income tax return (ITR) filing, his or her major focus should get on reducing the tax outgo because a penny saved may be a penny earned. If you're a methodical person, you'd realize the foremost basic tax-saving investment option - Section 80C of the tax Act, 1961. Being one among the foremost popular tax-saving options, most people claim deductions under this section to lower their taxes. It facilitates deductions of up to Rs 150,000 once a year. However, this might not be adequate which means you've got to require subsequent step and appearance at tax-saving benefits beyond Section 80C limit.


1. Section 80C of tax Act

As per the tax Act, 1962; there are certain clauses that provide tax-saving investments beyond the utmost limit available under Section 80C. These tax-saving investment options assist you to scale back the tax burden considerably. Tax and investment experts say that these investment options will have a positive impact on your financial life.

2. National Pension Scheme (NPS) calculator

Under Section 80CCD, you'll invest a further Rs 50,000 during this scheme aside from the contribution of Rs 150,000 available under Section 80C. In short, you'll claim a complete deduction of up to Rs 200,000 in each fiscal year by investing in NPS.

3. Interest payment on home equity credit EMI

The payment of interest a part of a home equity credit is eligible for tax break under Section 24 of the tax Act, 1961. just in case the property is occupied by the person taking the house loan, the utmost limit under this section is Rs 200,000. However, if you're not staying within the property and is rented out then there's no maximum limit, allowing you to say the entire interest amount as a tax write-off.

4. Interest payment of the house loan for first-time buyers

You can avail of a tax break of Rs 50,000 under Section 80EE if you're a first-time homeowner. This amount is that the above the tax write-off of Rs 200,000 which will be claimed for home equity credit interest repayment under Section 24. the standards to avail of this deduction are that the entire value of the house should be below Rs 50 lakhs, and therefore the loan amount should be Rs 35 lakhs or less. Furthermore, the house loan should are sanctioned between 1st April 2016 and 31st March 2017.

5. Interest payment of the house loan EMI for first-time buyers

If you're a first-time homeowner then you'll claim a deduction of up to Rs 150,000 under Section 80EEA. This amount is above the tax break of Rs 200,000 for repayment of home equity credit interest under Section 24. the standards to avail of this deduction are that the stamp tax value of the house property should be below Rs 45 Lakhs. Furthermore, the house loan should are sanctioned between 1st April, 2019 and 31st March, 2020.

6. Interest paid on electric vehicle loan

Under Section 80EEB, you'll claim a tax write-off of up to Rs 150,000 for the interest repayment for a loan taken for the acquisition of an electrical vehicle. To be eligible, the loan should are sanctioned between 1st April 2019 and 31st March 2023.

7. Interest earned from saving account

A deduction of up to Rs 10,000 are often claimed under Section 80TTA for interest earned from a saving checking account with a depository financial institution , a post-office or a co-operative society engaged within the business of banking.

8. LTCG on sale of the residential property

An Individual or a HUF can claim an exemption under section 54 if the financial gain is invested to get a replacement residential house within one year before the date of sale or two years after the date of sale of the first house or construct a replacement house within a period of three years from the date of sale of the first house.


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