Saving taxes is not as cumbersome as one may think as there are several rules and regulations in the IT Act which allows a taxpayer to have the rebate on tax.
Take a look at eight of them:
Joint home loan
If the husband and wife together buy an apartment or a house and are repaying the loan amount together, then both the persons, individually, are liable for IT deduction worth Rs. 2 lakh and 2.5 lakh, respectively.
As a salaried employee, if you have travelled domestically in the last four years, then you can claim Leave Travel Concession (LTC).
If you have been transferred to a new location and the employer puts you up in a hotel for fifteen days, then such a facility will not be taxed by IT department.
To claim travel allowance, it is not compulsory to provide expenses bill. However, if you are on an official travel, then the employer will reimburse the amount spent once the bill is presented. Such an amount reimbursed is not taxable.
Generally, Provident Funds have a five-year block-in period. But, one can take a loan against the PF for specific purposes. Such a move is also not taxable under IT Act.
House rent allowance
If your employer does not provide you with HRA, still you can claim HRA deduction under section 80 GG. However, the house in question must not be owned by your husband/wife/children. the maximum limit for deduction is Rs. 5,000 per month.
Employee Stock Option Plan
If you are a part of Employee Stock Option Plan, then such an income is not taxable. Stock valuation is taxable but not grants and options wasting.
Deduction on HRA and home loan
If you are claiming HRA and have a house loan as well, then you can claim house loan deduction and HRA injection. However, the this is only applicable if the house you have bought is outside the city where you work and the house on rent is in the city where you work.
Wasn’t it really easy?