Beat the FOMO – Last Minute Tax Saving Hacks

1. Interest on Education Loan (Sec 80E)

Education loans not only facilitate higher education but can also help you save taxes. Section 80E allows you to claim deductions on the interest paid on an education loan. The loan may be availed for self, spouse, children, or any student for whom you act as the legal guardian.

The deduction is available for a period of eight years from the start of the interest payment or entire interest paid, whichever is earlier.

2. Stamp Duty and Registration Expenses (Sec 80C)

When you buy a house or any property, it entails the payment of stamp duty and registration charges. If you have acquired a property in the last financial year, you can claim a deduction of these charges under section 80C up to a maximum limit of INR 1.5 lakh.

3. National Pension Scheme (Sec 80CCD 1B)

Most people are aware that an amount of up to INR 1.5 lakhs per annum invested in the National Pension Scheme (NPS) is eligible for deduction. An additional lesser-known deduction is available under section 80CCD (1B) for an amount of up to INR 50,000 invested in a Tier II NPS account.

4. Disabled Dependent (Sec 80DD)

If you are supporting a disabled dependent, you can claim a deduction under section 80DD from your gross income. The deduction is available for expenses incurred for their treatment, rehabilitation, and training. If the disability level is between 40% and 79%, the maximum deduction is limited to INR 75,000. For disability levels exceeding 80%, the maximum amount is capped at INR 1.25 lakhs per year.

5. Infrastructure Bonds (Sec 80CCF)

Section 80CCF provides tax benefits for investments in notified infrastructure bonds. You can reduce your liability by up to INR 20,000 in one assessment year.

6. Health Insurance Premium (Sec 80D)

Health insurance not only protects you from unexpected expenses during a medical emergency but can reduce your tax liability. Premium paid for self, spouse, and dependent children is eligible for deduction up to an amount of INR 25,000 per year. Additionally, the premium paid on a health insurance policy for senior parents is eligible for further deductions of between INR 25,000 and INR 50,000 depending on their age. If you are over 60 years old, the total deduction for self, spouse, children, and parents is available for a maximum amount of INR 1 lakh per annum.

Don’t let FOMO drain your hard-earned money – ACT NOW and reduce your tax liability before 31st March. Today’s right moves ensure larger savings, smarter investments, and a stress-free tax season.

Ready to move? Get started before it is too late! Connect with us at SRH Wealth Management to make smart investment choices while reducing your tax liability.