{"id":8573,"date":"2021-12-29T09:40:00","date_gmt":"2021-12-29T04:10:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=8573"},"modified":"2021-12-29T10:09:13","modified_gmt":"2021-12-29T04:39:13","slug":"save-income-tax","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/save-income-tax\/","title":{"rendered":"Have you Explored all Options to Save Tax for FY 2021-22?"},"content":{"rendered":"\n
Everyone hates paying taxes and always are on lookout for Options to Save Tax<\/strong>. However the income tax rules in India are complicated and its becoming more so in recent years. Budget 2020 introduced the concept of New Tax Regime<\/a>, then there were several changes to the laws in 2020. Thankfully Budget 2021 has been less event full with very minor tweaking to the income tax rules. In this post we try to explore – What is the Maximum Income Tax I can save for FY 2021-22?<\/strong> <\/p>\n\n\n\n To make it simple, we have listed all the tax saving tax sections in the table below. This will help you check if you have taken advantage of the relevant section. We have also published eBook which tells you about all options to save tax<\/a> that are available to an individual (both salaried & business). <\/p>\n\n\n\n Broadly speaking If you are able to avail all these sections you can make more than Rs 14 Lakhs income tax free. But unfortunately not all sections would be applicable for you. The table below gives the details of all the tax exemptions available:<\/strong><\/p>\n\n\n\n Though 14 Lakhs sounds big amount but most people would avail only few of the above. Here is the reason:<\/p>\n\n\n\n So out of Rs 14 lakhs, around 5 lakhs exemption would be claimed by very few tax payers and in special cases only.<\/p>\n\n\n\n Salary components and salary structure plays a very important role in how much income tax you pay. We have come up with some optimised salary structure using which you pay NO income tax even with CTC of more than Rs 20 Lakhs<\/a>.<\/p><\/div><\/div>\n\n\n\n Most tax payers even after using all the tax saving sections would be able to claim tax benefit up to Rs 6 to 6.5 Lakhs.<\/strong><\/p>\n\n\n\nOptions to Save Tax for FY 2021-22<\/h2>\n\n\n\n
S. No.<\/th> Tax Sections<\/strong><\/th> Description<\/strong><\/th> Maximum Tax Exemption Limit (Rs.)<\/strong><\/th><\/tr><\/thead> 1<\/td> 80C\/ 80CCC\/ 80CCD<\/strong><\/td> Investment in EPF, ELSS, PPF, FD, NPS, NSC, Pension Plans, Life Insurance, SCSS, SSA and NPS. Also includes Home Loan Principal repayment, Tuition Fees, Stamp Duty. Best Tax Saving Investments u\/s 80C<\/a><\/td> 1,50,000<\/td><\/tr> 2<\/td> 80CCD(1B)<\/strong><\/td> Investment in NPS (Should you Invest Rs 50,000 in NPS to Save Tax u\/s 80CCD (1B)?<\/a>)<\/td> 50,000<\/td><\/tr> 3<\/td> 24<\/strong><\/td> Interest paid on Home Loan for Self occupied homes. You can claim claim Tax Benefit on both HRA & Home Loan – Know How?<\/a><\/td> 2,00,000<\/td><\/tr> 3 A<\/td> 80EEA<\/strong><\/td> Additional Tax Deduction of Rs 1.5 lakhs on home loans on purchase of affordable home (subject to certain conditions)<\/em><\/td> 1,50,000<\/td><\/tr> 4<\/td> 80EEB<\/strong><\/td> Additional tax deduction of Rs 1.5 lakhs for payment of interest on auto loan taken for purchase of electric vehicles<\/td> 1,50,000<\/td><\/tr> 5<\/td> 80E<\/strong><\/td> Interest paid on Education Loan. No Limit \u2013 Rs 50,000 is just an assumed value <\/em>Tax Benefit on Education Loan (Sec 80E)<\/a><\/td> 50,000<\/td><\/tr> 6<\/td> 80D<\/strong><\/td> Premium payment for medical insurance for self and parents. Includes Rs 5,000 limit for preventive health checkup Making Sense of Tax Benefit on Health Insurance u\/s 80D<\/a><\/td> 60,000<\/td><\/tr> 7<\/td> 80DDB<\/strong><\/td> Treatment of Serious illness for self and dependents (Limit of Rs 1,00,000 for Senior Citizens and Rs 40,000 for others)<\/td> 80,000<\/td><\/tr> 8<\/td> 80U<\/strong><\/td> Physically Disabled Tax payer (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)<\/td> 1,25,000<\/td><\/tr> 9<\/td> 80DD<\/strong><\/td> Physically Disabled Dependent (Rs 75,000 for 40% to 80% disability and Rs 1,25,000 for more than 80%)<\/td> 1,25,000<\/td><\/tr> 10<\/td> 80G<\/strong><\/td> Donation to approved charitable funds like Prime Minister Relief fund, etc (assumed value)<\/em><\/td> 50,000<\/td><\/tr> 11<\/td> 80GGA<\/strong><\/td> Donations for scientific research or rural development (assumed value)<\/em><\/td> 50,000<\/td><\/tr> 12<\/td> 80GGC<\/strong><\/td> Donations to political parties (assumed value)<\/em><\/td> 50,000<\/td><\/tr> 13 A<\/td> 80TTA<\/strong><\/td> Interest received in Savings Account Which bank offers highest interest rate on savings account?<\/a><\/td> 10,000<\/td><\/tr> 13 B<\/td> 80TTB<\/strong><\/td> Interest Income for Senior Citizens Only Learn all about Section 80TTB <\/a><\/td> 50,000<\/td><\/tr> 13 C<\/td> 10(15)(i)<\/strong><\/td> Interest up to Rs 3,500 for single holder account and up to Rs 7,000 for joint account in Post Office Saving Account<\/td> 7,000<\/td><\/tr> 14<\/td> 80GG<\/strong><\/td> For Rent Expenses who do have HRA component in salary How to Claim Tax Benefit for Rent Paid u\/s 80GG?<\/a><\/td> 60,000<\/td><\/tr><\/tbody> <\/td> <\/td> Maximum Tax Exemption Possible (Rs.)<\/strong><\/td> 14,37,000<\/strong><\/td><\/tr><\/tfoot><\/table> The Problem<\/h3>\n\n\n\n
How to Pay 0 Income Tax on Salary of Rs 20+ Lakh?<\/strong><\/h4>