As a salaried woman working towards building wealth and pursuing financial freedom, factoring in your tax liability is important. Saving your hard-earned money is sure to be easier when you know the tax benefits that you are eligible for. To make the most of these benefits, familiarise yourself with these tax-saving perks.
1. Save while repaying your home loan
You can claim tax deductions on both the principal and interest components of your home loan. If you and your spouse have taken a joint home loan, you both can claim these tax deductions on your tax filings. In addition, you can claim up to Rs. 1.5 lakh on principal repayments under Section 80C of the IT Act and Rs. 2 lakh made towards interest repayments under Section 24.
You can also make the most of home loan tax benefits as a first-time home buyer as you are allowed to claim up to Rs. 50,000 additionally under Section 80EEE towards the interest you pay. Maximise these benefits by availing of a customised Home loan for women of up Rs. 5 crore, or higher for a tenor of up to 30 years on nominal interest rates from Bajaj Finserv.
2. Bring down your taxes with house rent allowance
If you live in a rented house, you can claim deductions on house rent allowance as a salaried individual. Your tax benefits will depend on your basic salary and HRA amount fixed by your employer and by your rental income if any. You can also claim a house rent allowance even if your employer does not give you HRA or when you are self-employed. In this case, you just need to mention the rent claim while filing your taxes to get the deduction.
3. Get tax-free returns with Sukanya Samridhi Yojana
If you have a daughter below 10 years, you can invest in the Sukanya Samridhi Yojana that comes with an exempt-exempt-exempt (EEE) status. All your contributions to this scheme are eligible for deductions, and the maturity amount is non-taxable. You can invest a minimum of Rs. 1000 or a maximum of Rs. 1.5 lakh under this scheme. This account will mature when your daughter is 21 years old. However, you can withdraw up to 50% when she is 18 years old.
4. Save on taxes with an education loan
Under the Income Tax Act, if you have taken an educational loan for higher education for yourself, your spouse, your children, or those for whom you are a local guardian, you can claim tax deductions on the interest repayments for the loan under Section 80E. You can claim this deduction up to 8 years or until the interest has been paid in full, whichever is lower. Furthermore, there is no cap on the amount you can claim as a deduction under this Section.
5. Claim deductions on interest in savings account
The interest earned in your savings account up to Rs. 10,000 is allowed for deduction from your taxable income. It means that you can claim tax deductions under Section 80TTA on interest from savings deposits by listing the interest earned.
6. Save with contributions to charity and relief funds
You can claim 50% or 100% of the amount paid to charities or relief funds as tax deductions. There is no limit on the deduction you claim, provided you donate instead of the charitable trusts named and recognised by the government. Donations made using cheques and demand drafts are considered under Section 80G. However, you can make a donation of up to Rs. 2,000 in cash to avail of the deduction too.
7. Invest in health insurance
By investing in a good health insurance policy, you can tackle future healthcare costs and save on taxes at the same time. You can claim up to Rs. 25,000 per year on the premiums paid towards health insurance for yourself, your spouse, dependent children, and senior citizen parents under Section 80D of the IT Act. Here you can claim an additional Rs. 30,000 for insurance policies you pay for your senior citizen parents.
With this many tax benefits, you can begin planning how to maximise your tax deductions at the end of the financial year.
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