Article: Ways to Save on Income Tax in 2024 Without Investments

Synopsis: Several provisions in the Indian Income Tax Act allow individuals to reduce their tax liability through eligible expenses without requiring new investments. Key strategies include deductions for education loan interest, tuition fees, charitable donations, medical insurance premiums, home loan interest, and rent paid. Consulting a tax expert is recommended to effectively navigate these options and ensure compliance.

As the income tax return (ITR) filing season approaches, many taxpayers are looking for ways to reduce their tax liabilities without making new investments. The Indian Income Tax Act of 1961 offers several provisions that allow individuals to save on taxes through eligible expenses. Here are some effective strategies:

1. Education Loan Interest (Section 80E)

Taxpayers can claim deductions on the interest paid on education loans for higher education under Section 80E. This deduction has no upper limit and is available for up to eight years from the start of repayment.

2. Tuition Fees for Children (Section 80C)

Individuals can claim up to Rs1,50,000 per year for tuition fees paid to educational institutions in India for up to two children. This includes fees for play-school, pre-nursery, and nursery classes but excludes development fees or donations.

3. Donations to Charitable Organizations (Section 80G)

Donations to approved charitable organizations can be deducted from taxable income under Section 80G. Depending on the organization, the deduction can be either 50% or 100% of the donation amount. Accurate documentation is required to claim this benefit.

4. Medical Insurance Premiums (Section 80D)

Deductions are available for premiums paid towards medical insurance for oneself, spouse, children, and parents. Individuals can claim up to Rs25,000 per annum, with a higher limit of Rs50,000 for senior citizens.

5. Home Loan Interest and Principal (Sections 24(b) and 80C)

For self-occupied properties, individuals can claim up to Rs2 lakh per year for interest paid on home loans under Section 24(b). Additionally, principal repayment qualifies for deductions under Section 80C.

6. Rent Paid (Section 10)

Individuals living in rented accommodations can claim deductions for rent paid. The deduction amount depends on the individual's salary and city of residence.

Consulting a tax expert or financial advisor is recommended to navigate these options effectively and ensure compliance with applicable provisions. These strategies can significantly reduce your tax burden without the need for new investments.