The time for filing income tax return is getting closer. Income tax filing process is going to start soon. At the same time, income tax is collected by the government so that schemes can be made for the welfare of the people. At the same time, personal tax can be filed in the country through two systems at present. One is New Tax Regime and the other is Old Tax Regime.
tax exemption options
At the same time, tax exemption is also provided to taxpayers by the government. However, if someone files tax according to the New Tax Regime, then they do not get any tax exemption on investment. Apart from this, if someone files tax according to Old Tax Regime, then he can also get exemption on investment while paying income tax. Many options have been given by the government to the people to save tax.
Income Tax
Taxpayers can claim a deduction of up to Rs 1,50,000 in a financial year by investing in ELSS, PPF, NPS, EPF, tax saving FD and other instruments under Section 80C of the Income Tax Act. Apart from this, investing in the National Pension Scheme (NPS) is another smart way to save tax. Taxpayers can claim an additional deduction of Rs 50,000 over and above the overall limit of Rs 1.5 lakh under Section 80C.
income tax exemption
Taxpayers can claim a deduction of up to Rs 25,000 for health insurance premium paid for their spouse and their dependent children. Additionally, taxpayers can claim an additional deduction of Rs 25,000 for their parents. Senior citizens can claim up to Rs 50,000 for both the categories.
