How you can Save more Tax: Soon your company will ask for written proof of the investment or deduction you have given for tax saving in this financial year 2021-22, on that basis TDS (Tax Deduction) from the salary of the next four months. at Source) will be deducted. Obviously you would like to have at least the burden of tax on you. So if you want to save tax, then you have to look at better investment options.
Demand to increase tax exemption under 80C
You are aware of the tax exemption of Rs 1.50 lakh available under Section 80CCE of Income Tax. For years, taxpayers have been demanding from the government and the Finance Minister to increase the tax exemption limit under section 80CCE from Rs 1.50 lakh, so that they can save tax and invest in tax saving plans. . But this has not happened.
Benefit of tax exemption on investment of Rs 1.50 lakh
But today we will tell you how under section 80CCE, apart from the tax exemption available on Rs 1.50 lakh, taxpayers can save tax by investing where. Under Section 80CCE of Income Tax, tax exemption is available on investment of Rs 1.50 lakh. If a taxpayer invests Rs 1.50 lakh in Employee Provident Fund, PPF, Insurance Policy, NSC, ELSS and National Pension Scheme, then he is entitled to tax exemption. Under 80C, the principal amount of home loan and payment of tuition fees of children also get tax exemption which is included in Rs 1.50 lakh only.
How to save and tax
But apart from this, if you want to save tax by investing somewhere, then tax can be saved by investing in National Pension Scheme under section 80 CCD(1B). National Pension Scheme (NPS) has emerged in recent times as a very popular option for individual taxpayers to save tax.
Tax exemption on investment in NPS under section 80CCD
You can deposit a maximum of Rs 50,000 in the National Pension Scheme (NPS) to save tax under Section 80CCD. Through this, you will be able to save tax on additional investment of 50 thousand rupees and under 80C with a tax saving of 1.5 lakh, 50 thousand and that is, in total investment up to two lakh rupees can be availed of tax exemption.