Question: How Can I Save My Tax After 80c?

How can I save tax after 1.5 lakhs?

The most popular avenue for tax-saving is section 80C of the Income Tax Act.

Under Section 80C, an amount equal to the investment you make in specified instruments or expenses, up to a maximum of Rs 1.5 lakh in a financial year, reduces your gross total income (GTI) by the same amount..

How can I save tax on my new tax regime?

If you’re shifting to new regime, reconsider tax-saving productsThe case for one-time tax-saving investment.Equity-linked savings scheme (ELSS): Investment in ELSS funds, which are diversified equity funds, offers deduction up to ₹1.5 lakh under Section 80C of the Income-tax Act, 1961. … Public Provident Fund (PPF): The other investment product you can look at is PPF.More items…•

What are the best tax saving options?

Best Tax-Saving Investments Under Section 80CInvestmentReturnsLock-in PeriodSukanya Samriddhi Yojana8.5%N/ANational Savings Certificate7%-8%5 yearsSenior Citizen Saving Scheme8.7%5 yearsBank FDs6%-7%5 years5 more rows•Jun 23, 2020

How can I save tax on 20 lakhs?

These deductions include: Section 80C deduction of maximum Rs 1.5 lakh, section 80D deduction for health insurance premiums paid and other deductions for which a taxpayer is eligible, section 80TTA deduction for interest received from a saving account held with bank or post office etc.

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

Is FD tax free?

Tax deduction on FD interest The interest earned under an FD is taxable under “income from other sources”. The amount invested under 80C of the Income Tax Act is exempt but interest earned under such investments is taxable.

How can I reduce my taxable income?

Section 80C: This section of Income Tax Act allows an individual or a Hindu Undivided Family (HUF) to invest in tax-saving instruments to reduce the taxable income level and thereby reduce the tax liability. You can invest up to Rs 1.5 lakh per year in various instruments listed in this section.

What is the 80c limit for 2019 20?

First you can claim standard deduction of Rs 50,000 for FY 2019-20. You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues. You can also invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.

Is SIP tax free?

Only investments in ELSS through SIP have tax exemption up to Rs. 1.5 lakh PA under Section 80C. … An SIP is just a mode of investment.

Is standard deduction allowed in new tax regime?

Exemptions and deductions not claimable under the new tax regime. The following are the deductions and exemptions you cannot claim under the new tax system: The standard deduction, professional tax and entertainment allowance on salaries. Leave Travel Allowance (LTA)

Which is better old tax or new tax slab?

This would benefit individual taxpayers, particularly those in the lower tax slabs….Income-tax rates under the new tax regime v/s the old tax regime.Income slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)10-12.5 lakh30%20%12.5-15 lakh30%25%Above 15 lakh30%30%4 more rows•Feb 7, 2020

What deduction can I claim on my taxes?

Common itemized deductions include mortgage interest paid, property taxes, medical expenses and charitable donations. While choosing the standard deduction for your filing status is easy, you may be able to save more money by itemizing your deductions.

How can I save tax on 10 lakhs?

There are possible components for tax deductions which can help you save taxes:Annuity Plans.Child Tuition Fees.Employee National Pensions Scheme (NPS)Equity Linked Savings Scheme Investment.Fixed Deposits.Housing Loan Interest.Interest on Saving Account Deposits.Interest on the loan is taken for Residential House.More items…

What is 80c exemption?

Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs. 1.5 lakh every year from an investor’s total taxable income.