• Notification Date: 25-05-2024
• Notification No: N/A

5 Top Ways to Save Income Tax that You Should Know

As the Income Tax Return (ITR) filing season is going on, everyone will have to file an ITR return who comes under the tax bracket. However, many people don't know much about tax saving tips and due to lack of knowledge, they end up paying more tax which they could save from some better tax saving tips.  

These are 5 Tax-saving Tips:  

1. Tax Exemption on Pre-nursery Fees: 

Even if your child is small and he is in play school, pre-nursery or nursery, you can still get tax exemption on his fees. Although this tax benefit was implemented in 2015, it did not become as popular as the school tuition fee deduction became. You can get this exemption under Section 80C and a maximum of two children can get this benefit.  

2. Give Interest to Parents: 

If your parents are in a low tax bracket or they are not taxed yet, then you can take a loan from them for household expenses and pay interest on it. However, to get tax exemption, do not forget to get an attested certificate of interest payment. If you are not able to provide this proof then you will not get tax exemption. You can get this tax exemption under Section 24B of Income Tax. Under this, the maximum discount that can be availed is Rs 2 lakh.   

3. Pay House Rent to Parents: 

If you live with your parents and are not able to claim HRA, then you can claim HRA by paying rent to your parents. Under Section 10(13A) of the Income Tax Act, you can get a tax deduction on HRA by showing your parents as landlords. However, if you are taking any other housing benefit then you will not be able to claim HRA.   

4. Take Health Insurance for Parents or Wife and Children:

You can save your taxes while also taking care of your parent's health. If you take health insurance for your parents, you get tax exemption on the premium amount. You will get tax exemption on premiums up to Rs 25,000 on health insurance for parents below 65 years of age. If they are above 65 years of age, you will get the benefit of tax exemption up to Rs 50 thousand.   

5. Tax Exemption on Parents' Medical Expenses: 

You can also get tax exemption on the medical expenses of your parents. However, for this, it is necessary that your parents' age should be 60 years or more. At this age, they often have to bear a lot of medical expenses, on which you can get tax exemption under Section 80D. Under this, you can get tax exemption on a maximum of Rs 50 thousand.