look news india
The last date for filing income tax returns, 31st July, is slowly coming closer. Then people start thinking that income tax can be saved in some other ways besides the usual methods. Therefore, whatever investment you want to make to save income tax, do it before 31st March. Anyway, we are telling you five things by which you can save income tax.
1. Tax exemption on pre-nursery fees
Even if your child is young and is in playgroup, pre-nursery or nursery, you can claim tax relief on their fees. Thus, this tax benefit was implemented from 2015, but it was not as popular as the school tuition fee deduction became. This exemption can be availed for a maximum of two children under Section 80C.
2. Pay interest to parents
If your parents are in the lower tax bracket or have not paid tax yet, you can take a loan from them for household expenses and pay interest on it. However, do not forget to get a verified certificate of interest payment to get tax exemption. If you are unable to provide this proof, you will not get tax relief. You can get this tax exemption under section 24B of Income Tax. Under this, a maximum exemption of up to Rs 2 lakh can be availed.
3. Pay house rent to parents
If you are living with your parents and not claiming HRA, then you can claim HRA by paying rent to your parents. If you are thinking that this is wrong, then it is not so. Under section 10 (13A) of the Income Tax Act, you can get tax deduction on HRA by showing tenancy to your parents. Under this, you can show that you pay rent to your parents. But if you can avail any other housing benefit then you cannot claim HRA.
4. Insurance for parents or husband-wife-children
You can save your tax by taking care of your parents' health. If you take health insurance for your parents, you can get tax exemption on the premium amount. You will get tax exemption on premium up to Rs 25,000 on health insurance for parents below 65 years of age. So for parents above 65 years of age, you can get tax exemption up to Rs 50,000.
5. Tax exemption on medical expenses of parents
You can also get tax exemption on the medical expenses of your parents. But for this it is necessary that the age of your parents should be 60 years or more. At this age they have to bear many medical expenses, on which you can get tax exemption under section 80D. In this way you can get tax exemption up to 50 thousand.
