IT"s Not Too Late To Save tax!

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IT"s Not Too Late To Save tax!

The deadline for making tax-saving investments is 31 March. But, there is still time to adopt last-minute tax-saving tips to claims tax benefits offered by the Government. The most significant benefit is deduction under section 80C of the Income-tax Act under which investments in various savings instruments

Apart from this, an Individual can make donations to charitable trusts and institutions and deduction under section 80G. The investment/deposit has to be actually made during the current financial year ending 31st March 2020 for claiming benefit in the assessment year 2020-21. Most importantly, even if investments could not be reported to the employer  on time

Apart from the above, there are several other ways to lower the tax burden. For instance, payment of Municipal tax before 31st March: Municipal taxes are allowed on a payment basis. If municipal taxes relating to earlier years have been paid in the current financial year on or before 31st March, an Individual can also claim a deduction for the entire amount.

Contribution to National Pension Schemes (Section 80CCD):

Investments under the NPS scheme, up to 10% of gross income will be eligible for deduction under Sec.80CCD (1). This Sec.80CCD (1) is part of the Sec.80C limit. Hence, the maximum tax benefit one can avail is Rs.1,50,000. Employer’s deductions will be claimed by employees under Sec.80CCD (2). 

Health Insurance Premium (section 80D):

Section 80D provides for deduction available for health insurance premia paid. An Individual can claim the deduction in respect of premium paid on the health of himself or family or parent which is calculated as under:

In the case of the individual, Rs. 25,000 for himself and his family
If an individual or spouse is 60 years old or more the deduction available is Rs 50,000.
For uninsured super senior citizens (80 years old or more) medical expenditure incurred up to Rs 50,000 shall be allowed.

Donations to charitable trusts and institutions and deduction under section 80G:

An Individual who would like to claim a further deduction from his gross total income can make a donation to certain funds and charitable institutions. Generally, a deduction is allowed@ 50% except in case of certain funds and institutions such as PM’s Relief Funds, the National Children’s Fund, Swachh Bharat Kosh, etc.

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