Ways to save income tax beyond Rs 1.5 lakhs salary

Ask the Community Income Tax
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Hi All,

How can we save income tax beyond Rs 1.5 lakhs after already investing in PPF, LIC, NPS etc.?

Thank you.
Swati

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2

Hello Swati,

NPS is over and above 80C.
Investment up to Rs. 50,000 in NPS ( Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act.

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Hi @Swati,

There are a lot of Sections under the Income Tax Act.

But the most commonly used beyond Section 80 C are the below:

  1. HRA - House Rent allowance - More details here.
  2. LTA - Leave Travel Allowance - More details here.
  3. Section 80 D - More details here.

Some more tips and details for Tax Planning here.

Hope it helps :slight_smile:

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Hi @Swati

Beyond most commonly used items, so savings can give you an asset as well as tax exemption.

Example: Home loan - principal & interest - Electric Vehicle - Children Tuition Fees - And majorly food Coupons etc.

Sometimes your employer can also help you with some FBP components, that saves some tax.

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Hi,

1.Tax savings on repayment of an Education loan under Section 80E.
2.Tax savings on rent paid in cases where HRA isn’t paid under Section 80GG/HRA exemption
3.Tax savings on the treatment of specified diseases under Section 80DDB (For self or dependent)
Above three are also some commonly scenarios where employee can save tax it it is applicable to them .

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