Best Income Tax Saving Plans Not Only By Investments But With Expenses Too

The deadline for saving income tax for the current financial year (FY23) is near. As soon as the month of March ends, the new financial year will start and along with it the opportunities to save income tax will also go out of hand. It is generally believed that income tax can be saved by adopting some methods of investment, but do you know that some such provisions have also been made in the Income Tax Act, under which you can deduct expenses. Instead, you can also save tax.

old system beneficial

First of all, let us tell you that at present two systems of paying income tax, New Tax Regime and Old Tax Regime are applicable for the taxpayers. If you want to take advantage of various measures to save income tax, then the old tax regime is a profitable deal for you. Under the old tax regime, you can reduce your tax liability by taking advantage of various exemptions and deductions under the Income Tax Act, 1961. Today we are going to tell you about such expenses, which can save you income tax as well.

HRA: If you are living in a rented house then you can claim it. You can claim a deduction equal to the house rent as per the Income Tax rules. This reduces your taxable income and eventually the tax liability also reduces. There is a component called HRA in the salary of every salaried person.

Home loan interest: If you have bought a house by taking a loan, then tax can be saved even against its interest. In lieu of this, the taxpayer can claim a deduction of up to Rs 02 lakh. That means you can reduce your taxable income by Rs 02 lakh.

Home loan principal amount: Not only the interest of the home loan but also the principal amount helps in saving tax. Under Section 80C of the Income Tax Act, the taxpayer can claim a deduction of up to Rs 1.5 lakh on the principal amount of the home loan.

Registration fee paid for the house: If you buy your own house, it is beneficial in many ways. First of all, you get your own house. Along with this, you can save tax in many ways. The fee paid in the registration of the house can also be claimed under 80C.

Loan for Electric Vehicle: If you buy an electric vehicle by taking a loan, then first of all you get the benefit of government subsidy. Apart from this, you can also claim a deduction of up to Rs 1.5 lakh against the loan. However, after March 31, 2023, this exemption may expire.