If you want to save tax without investing in FD, PPF, ELSS or other similar kind of options given under section 80C of Income Tax Act,1961 given below options are just for you only:
Interest on Home Loan:
You can claim interest payable up to Rs. 2lakh, provided loan is obtained acquire, construct, repair, renew or reconstruct the property under section 24 of Income Tax Act, 1961. To claim the deduction of Rs 2lakh such loan should be obtained on or after the 1st day of April, 1999 and such acquisition or construction is completed within 5 years from the end of the financial year in which capital was borrowed.
Example: ABC has taken a loan of Rs. 50lakh on 20 April 2016 @ 10% interest per year for 20 years to acquire a housing property. Now for the FY 2016-2017, he will be eligible to claim interest under section 24 of Rs. 2Lakh, though actual interest is of Rs. 5lakh (10%*50Lakh). He can continue to get same deduction up to 20 years only if such acquisition gets completed with 5 years; i.e; up to FY 2021-2022.
Interest on loan taken for higher education:
Under section 80E of Income Tax Act, 1961 a deduction is allowed for any amount of interest paid on loan from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relative. An individual can claim such deduction maximum for the period of 8 years. There is no restriction on the amount of interest claimed as deduction.
A charity or donation can also help you to save tax as per section 80G of Income Tax Act, 1961. You can avail a deduction of 50% or 100% of charity or donation amount as specified in the section. Further please not if your cash donation exceeds Rs. 2,000 no deduction will be allowed to you. So keep donating.
Kindly note please take an expert advice before making any tax planning.
Tax planning is the analysis of one's financial situation from a tax efficiency point of view so as to plan one's finances in the most optimized manner.
For GST, the term Aggregate Turnover implies all provisions made by the assessable individual whether all alone or sake of a foremost.
A tax return is a form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information.