For The Financial Year 2020-21, 31st March 2021 is the last date to make Tax Savings Investments. It’s time to optimise your taxes and take the right choices in investing in to tax saving instruments.
The major Tax Saving Investments are as follows
1. Repayment of House Loan: If the person availed a house loan then he can eligible to claim a deduction of up to Rs.1,50,000 against Principal amount paid during the year.
2. LIC Premium: If the person Paid Life Insurance of self or Spouse they will eligible to claim a Deduction up to 150000/-
3. Children’s tuition fee: Deduction is available only to the extent of tuition fee paid for two children. Tuition fee should be paid towards full time course to university / college / educational institution in India. This deduction is not allowable for payment of tuition fees for self or spouse.
4. Health insurance premium: Health insurance premium paid for self, spouse or children. You can get a tax deduction of maximum Rs. 25,000 on the health insurance premium for self and family. If you are a senior citizen, you can claim tax deduction on the premium of up to Rs. 50,000
5. Home Loan Interest Paid: Section 80EEA gives additional exemption of Rs.1,50,000/- on the payment of interest on Home Loan. The loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2021. The amount of loan sanctioned for acquisition of the residential house property does not exceed 35 lakh rupees. The value of residential house property does not exceed Rs. 45 lakh
6. Interest paid on Electric Vehicle Loan: Section 80EEB gives Tax benefit on Electric Vehicles Electric Vehicles made affordable by providing IT reduction of Rs 1.5 L on interest paid on Loan taken to purchase. This is in addition to lowering the GST from 12% to 5%. he loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2023;
More such tax saving options and their relative rate of return can be found @ https://eztax.in/tax-saving-investments