Last chance to save tax, invest here in the last 3 days, money will be saved

Let us tell you that in the old regime of income tax, tax exemption is available in different sections. There are around 70 exemptions and deductions in the old tax regime of income tax. You can save tax by claiming these. However, there are very few options to save tax in the new regime.  

Big work is 80C 

If you are in the old tax regime then you have many options to save tax. 80C is the most popular deduction plan in the old tax system. Most people save tax up to Rs 1.5 lakh by using Section 80C of the Income Tax Act. 

You get the benefit of tax saving on expenses incurred on items like life insurance, employee provident fund, tuition fees. You can save tax by investing in equity linked saving scheme, unit linked insurance plan, guaranteed return plan etc.  

Where to invest to save tax:  

To save tax under Section 80C of Income Tax, you can invest in schemes like PPF, Tax Savings Fixed Deposit, Equity Linked Savings Scheme, Pension Scheme, Sukanya Samriddhi Yojana. 

After reaching the limit of Rs 1.5 lakh under 80C, you can invest in National Pension System (NPS) to save additional tax. Under Section 80CCD (1B) of Income Tax, you get an additional exemption of up to Rs 50,000 on investment in Tier-1 account of NPS.  

Where to invest for 80D:  

After the limit of 80C is over, you can invest in 80D to save additional tax. Through health insurance, you can protect yourself from medical expenses as well as save taxes. 

Under Section 80D, you can get tax exemption of up to Rs 25,000 on taking health insurance for yourself, wife and children. If you take a policy for your parents, you will get a tax deduction of up to Rs 50 thousand.  

Section 80G: You can donate to pay tax. 

If you want to save more tax then you can get tax deduction under Section 80G. You can save tax by donating. Donation to relief funds and charitable organizations, temples, NGOs etc. gets tax exemption under section 80G of Income Tax. You can donate the amount through cheque, DD or online transaction.

Tax exemption on HRA 

If you want to save more tax then you can save tax on house rent. Taxpayers living on rented accommodation can get tax exemption on House Rent Allowance. However, for this it is necessary that you get HRA.