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Did you know you can save a huge amount of money while filing your income tax return (ITR) this year? Finally some good news this 2020!
Work Smarter Not Harder
Indian women can avail special tax-saving provisions made by the Indian government, allowing us to save money smartly. The saved amount can be invested, put in a retirement fund or wistfully put aside for a post-covid trip to Hawaii.
Let’s take a look at how we can make this happen.
5 Steps to Save Almost ₹5 Lakhs!
1.) Save ₹25,000
If you’ve paid a health insurance premium for yourself or your eligible family members (parents, children, spouse), then you’re allowed a tax deduction up to Rs 25,000. [Reference: Section 80 (D) of I-T Act.]
2.) Save ₹1.5 Lakhs
If you’ve put your money in a tax saving FD,PPF, EPF or ELSS, you’re entitled to a tax deduction up to Rs 1.5 lakhs. [Reference: Sec 80 (C)]
3.) Save ₹10,000:
If you keep your money in higher-interest paying savings accounts, then for interest up to Rs 10,000, you can claim a deduction. [Reference: U/s 80 (TTA)]
4.) Save ₹2 Lakhs
If you have a Home Loan to buy a property, as a woman you’re entitled to a tax benefit of upto Rs 2 lakh [U/s 24] for interest paid against the home loan and up to Rs 1.5 lakh for principal repayment [u/s 80 (C)]
Buying a home in a woman's name also allows the advantage of getting a loan at a lower interest rate, and in some states there is a significant discount on stamp duty for registration of property if the property is bought in a woman’s name.
5.) Save ₹1.5 Lakhs For Your Parents:
Under Sukanya Samriddhi Yojna (SSY), your guardian (usually your mother or father) is entitled to get the tax benefit up to Rs 1.5 lakh [Reference: Sec 80 (C)]. Avail this benefit and get your parents an early New Years' gift!
Before you go, don’t forget that 31st December, 2020 is the final deadline for filing your income tax return (ITR) for FY 2019-20.
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