Master your finances: 7 ways to save on Income Tax

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1. Invest in Section 80C Instruments:

Section 80C of the Income Tax Act offers deductions up to Rs 1.5 lakh on investments in instruments such as PPF, EPF, ELSS and NSC. Image credits: Freepik

2. Utilize Section 80D for Health Insurance Premiums:

Under Section 80D, premiums paid towards health insurance for yourself, spouse, children, or parents are deductible. Image credits: Freepik

3. Claim House Rent Allowance (HRA):

If you receive HRA from your employer and live in a rented house, you can claim exemptions under Section 10(13A) of the Income Tax Act. Image credits: Freepik

4. Home Loan Interest Deduction (Section 24):

If you have taken a home loan, you can claim deductions on the interest paid under Section 24. For a self-occupied property, up to Rs 2 lakh can be claimed annually. Image credits: Freepik

5. Invest in NPS (National Pension System):

Contributions to NPS qualify for deductions under Section 80CCD(1). An additional deduction of up to Rs 50,000 is available under Section 80CCD(1B). Image credits: Freepik

6. Utilize Section 80G for Donations:

Donations made to specified funds and charitable institutions are eligible for deductions under Section 80G. Image credits: Freepik

7. Income from Agricultural Activities:

Income derived from agricultural activities is exempt from income tax under Section 10(1). This includes agricultural income earned directly by an individual. Image credits: Freepik Find Next One