Income Tax Saving without any Investment in India

Hello and welcome, today we will talk about how to save income tax or income tax exemption with no investment in the India. 

Income Tax Seving without any Investment in India 

In today's time, who does not want to save income tax. a lot of investments are sold here saying that if you invest here, then your returns will be multiplied. Although investing in income-taxing-investment is not a wrong thing, but the question arises that according to the salary we have, some investments are automatic and some are spending some money on which we get tax rebate. This is why in these situations we do not need to invest for tax saving. If we do not invest for income tax saving, then how will we save tax without any investment.

There are five such points about this subject where we will not have to invest in any way to save income tax. Now, according to the latest rule, if your taxable income is less than 5 lakhs, then income tax has to be paid zero i.e. no tax will be levied.

Following are the five greatest ways to save tax without any investment –

1. Income tax savings in Educational expenses.

• Education fees / Tuitions fees.
• Education Loan / Higher education loan.

2. EPF (Employee Provident Fund).

3. Income tax savings in Medical expenses.

• For self medical tax exemption
• For dependent medical tax exemption
• Chronic Disease.

4.Income tax savings in Residential expenses.

• HRA (House Rate Allowance).
• Home Lone
• Stamp duty & Registration

5. Donation. (Extra option for saving tax without investment).

Income Tax Seving without any Investment in India 

Income tax savings in Educational expenses.

There are two ways of save income tax in education area.

Education fees / Tuitions fees

This income tax saving has been kept in SECTION80C, under which if the tax payer has children and they are paying the education fees of their children, then they can get exemption in this tax.
Following are the conditions for this type of tax exemption:

• Income tax saving will be valid only for children of the tax payer.
• In this, full time courses of children have been kept, such as play school fees, school fees, college fees.
• It is limited to only two children of a tax payer

Education Loan / Higher education loan.

This income tax saving is placed in SECTION80E under which if the tax payer has taken a loan for his higher education, then the tax payer gets exemption on education loan’s interest.
Following are the conditions for this type of tax exemption:

• Income tax saving will be valid for self, spouse, children.
• There is no limit on this income tax exemption.The maximum period of income tax saving is limited to eight years.
• And a special thing that this country and abroad is valid for all places.

EPF (Employee Provident Fund).

This is a type of investment but it is not an additional investment by any means, because it comes out of our salary. This tax saving is placed in SECTION80C Whose limit is one lakh fifty thousand.

EPF = 12% (Basic salary + Dearness Allowance)
NOTE- Dearness allowance is also added for government employees.

Income tax savings in Medical expenses.

Disease comes in every person's life and they are paid money, this disease can also be disability or chronic disease. For this type of diseases, the income tax payer has an exemption which is as follows

For Self Medical Tax exemption

This tax exemption is placed in section 80U under which such income tax exemption is only for the income tax payer himself, which is as follows:

• Income tax saving on disability of less than 40% of self
• Income tax saving will be up to Rs 75,000 on disability between 40% - 80% of self.
• Income tax saving up to Rs 1,25,000 will be given on disability above 80% of self.

For dependent medical exemption

This tax exemption is laid down in SECTION80DD, under which such income tax exemption is only for the Income Tax payer's Dependent, which is as follows:

• Income tax saving on disability of less than 40% of dependent.
• Income tax saving will be up to Rs 75,000 on disability between 40% - 80% of dependent.
• Income tax saving up to Rs 1,25,000 will be given on disability above 80% of dependent.

For Chronic Disease

This type of medical income tax exemption is placed in SECTION80DDB according to which in chronic disease there is income tax exemption for Income Tax Payer Self and Dependent which is as follows

• This income tax exemption can be taken only for the specific disease of the self and dependent of the income tax payer.
• Specific Disease - Neurological, Cancer, Disorder, Haematological, Aids etc
• This income tax exemption is available only on the Actual Treatment Cost.
• It does not cover health insurance premiums.
• There is an income tax saving of Rs 40,000 and the same income tax saving for senior citizens is up to 60,000.

Income tax savings in Residential expenses.

If you are living in someone else's house then you can HRA (House Rate Allowance) claim. And if you have bought a home with a home loan, then you can claim tax exemption on the home loan.

HRA (House Rate Allowance).

HRA is a small part in the salary of every salaried person, due to which there is some assistance in the exemption of income taxes, in addition to those who are not salaried, there is also some income tax exemption under certain provisions.

HRA for Salaried Person

It is placed in SECTION10(13A). It has some points which are as follows.

• Minimum of Actual HRA
• 50% of Basic salary (if Metro City) / 40% of Basic salary (if Non-Metro)
• Rent – 10% of Basic salary

Whatever is least, it is added to the tax exemption.

HRA for Non- Salaried Person

This is covered inside SECTION80GG which has some clauses which are as follows

• 5,000 per month.
• 25% of Basic salary.
• Rent – 10% of Basic salary.

Here most of the first clauses are the shortest and hence it is added to the tax saving.

Home Lone

Home loan also has a lot of income tax saving, for example, the principal of a home loan can be claimed under SECTION80C and the interest is covered under SECTION24. 

NOTE: - If you are self-occupied, you can claim an interest component of two lakhs (yearly). 

Stamp duty & Registration.

If you have bought a house in current financial year, then your stamp duty and registration charge must be filled. This is also covered in SECTION80C. SECTION80c over all limit is one and a half lakh and through this, this limit of tax saving can be cleared simultaneously.

Donation. (Extra option for saving tax without investment).

This is a type of additional option. This type of income tax saving is placed in SECTION80G.
This income tax saving is applicable only for prescribed funds, in which some 100% and 50% in some are exempted from income tax.
Many income tax payers are exempted from tax in large NGOs, organization, Prime Minister's Relief Fund, donations.

Income Tax Saving without any Investment in India 

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