Tech Msd
Advertisement
  • Home
  • Technology
    • Windows
    • Software
    • Android
      • Apps
      • Mobiles
      • Social Media
  • Business
    • Digital Marketing
    • Web Design
  • News
  • Finance
    • Cryptocurrency
  • How to
  • Lifestyle
    • Home & Garden
    • Health
  • Entertainment
    • Movies
No Result
View All Result
  • Home
  • Technology
    • Windows
    • Software
    • Android
      • Apps
      • Mobiles
      • Social Media
  • Business
    • Digital Marketing
    • Web Design
  • News
  • Finance
    • Cryptocurrency
  • How to
  • Lifestyle
    • Home & Garden
    • Health
  • Entertainment
    • Movies
No Result
View All Result
Tech Msd
No Result
View All Result
Home Finance

Top Five Last Minute Tax-Saving Options

Top Five Last Minute Tax-Saving Options

by Mahesh
December 11, 2020
in Finance
Last Minute Tax-Saving Options

Filing taxes is quite a tedious and daunting task for many people, especially first-time taxpayers. In the process, many realise that making investments will help them save more on tax. Therefore, having a few last-minute tax-savings investment options is a must.

We have enlisted five tax-saving options that will allow you to save money on tax with ease. Let us begin.

  1. Investments under Section 80C

Last Minute Tax-Saving OptionsAnyone filing their taxes based on the old tax regime knows about the investments under Section 80C. As per the law, you can claim tax deductions of up to Rs. 1.5 Lakh on the investments made in term insurance plans, ULIPs, Public Provident Fund (PPF), Fixed Deposits, etc. These investment instruments not only help you secure yours and your family’s financial future but saves your tax as well.

However, when choosing the type of investment for saving tax, select only the ones you think will help you fulfil your financial objectives. Also, you should be able to have quick access to the amount invested in these instruments in case of any financial emergency. In fact, most of these options can be purchased online within a few minutes.

  1. Health insurance investments

Last Minute Tax-Saving OptionsAnother tax-savings instrument is the health insurance plan. The premiums paid towards health insurance can be availed for additional tax deductions under Section 80D of the Income Tax Act. This section offers deductions of up to Rs. 25,000 for salaried individuals and up to Rs. 50,000 for senior citizens.

On the other hand, if you have a term insurance plan with critical illness benefits, you can avail the tax benefits under Section 80D. However, critical illness is a rider benefit of term insurance, and you will have to pay additional premiums when you opt for it. You can use the term insurance calculator to determine the premiums charged on the policy based on the chosen coverage and rider benefits.

  1. Savings under Section 10(10D)

Last Minute Tax-Saving OptionsWhen you invest in life insurance plans, the maturity/death benefits received are tax-free under Section 10(10D) of the Income Tax Act. However, there is an expectation to it. Death benefits are exempted from tax for policies availed after April 01, 2012, and the total premiums amount is less than the full sum assured amount.

But for policies availed before April 01, 2012, then the premium expenses should be less than 20 percent of the total sum assured to be eligible for tax benefits under Section 10(10D).

  1. Charity

Last Minute Tax-Saving OptionsAny taxable income donated towards charity is exempt from the tax calculation under Section 80G.

There is no limit on this amount, and the transactions need to be made through banks.

For cash donations, the exempt amount is up to Rs. 2000, and these donations need to be made under registered charitable organisations to avail the said tax benefit.

  1. Expenses incurred towards the treatment of a disabled individual

Last Minute Tax-Saving OptionsThe treatment and well-being expenses of any disabled individual can be claimed for tax exemptions under Section 80DD. The limit is based on the disability percentage –

  • It is Rs. 75,000 for 40-80% disability and
  • It is Rs. 1.25 Lakh for 80% and above disability

Note that these claims can only be granted to the family members of disabled individuals.

These are a few tax-saving options that you can consider when filing your taxes this year. Just remember that when looking for tax-saving investments, find plans that secure the financial future of your loved ones in your absence and allow you to build your wealth over time.

ShareTweetSharePin
Previous Post

How am I charged for total expense ratio?

Next Post

8 Actionable Techniques to Shoot Traffic on Your Website in 2020

Mahesh

Mahesh

I'm an Engineer by profession and Writer by passion. I am working as a Content Marketer at TechMsd.com. I have been writing for more than 5 years, mostly on technology. I have experience includes writing, public speaking, and ghostwriting articles, blogs, and business communications across several industries. I like to watch foreign-language movies and public speaking.

Related Posts

Finance

Critical factors to know for succeeding at trading

January 15, 2021
Finance

What Are The Benefits Of A Digital Savings Account?

November 23, 2020
Finance

What Are The Benefits Of Purchasing An Online Term Plan?

October 22, 2020
Finance

How Does Term Insurance Benefit the Policyholder?

December 17, 2020
total expense ratio
Finance

How am I charged for total expense ratio?

September 4, 2020
Term Insurance plans
Finance

Types of Deaths Covered and Not Covered Under Term Plans

September 4, 2020
Next Post
SEO techniques

8 Actionable Techniques to Shoot Traffic on Your Website in 2020

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Critical factors to know for succeeding at trading

January 15, 2021

4 Benefits of a Pricing Management Software

December 29, 2020
Can You Deal with a Traffic Ticket Online?

Can You Deal with a Traffic Ticket Online?

December 23, 2020
What You Should Know About Setting Up a Membership Site

What You Should Know About Setting Up a Membership Site

December 23, 2020

Making a Move in 2021? Five Important Things to Consider

December 22, 2020

Top Dystopian Movies You Must Watch This Weekend

December 4, 2020

Brighten Up Your House with the Best Festoon Lights

December 1, 2020
Commonly Asked Questions About CMS E-Notification Requirements

Commonly Asked Questions About CMS E-Notification Requirements

November 24, 2020

What Are The Benefits Of A Digital Savings Account?

November 23, 2020

What can make your healthcare startup attractive for investors

November 20, 2020
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Submit Guest Post

ABOUT
Tech Msd is one of the top and most famous technology blog on the internet which covers latest technology news, gadgets, science and interesting stuff and provides helpful guides to the internet users.
© 2020 Tech Msd. All Rights Reserved.

No Result
View All Result
  • Home
  • Technology
    • Windows
    • Software
    • Android
      • Apps
      • Mobiles
      • Social Media
  • Business
    • Digital Marketing
    • Web Design
  • News
  • Finance
    • Cryptocurrency
  • How to
  • Lifestyle
    • Home & Garden
    • Health
  • Entertainment
    • Movies

© 2020 TechMSD