Delays in planning your tax saving investments make for an unpleasant year end. Top that not submitting receipts or bills for reimbursements on time; your efforts at saving tax are done to naught.
Save on tax you must, there are still ways to get around and close the year on a high note! Here are our 7 tips
Use EPF deducted by your employer to fill Section 80C. 12% of your Basic Salary is deducted each month from your pay cheque. This amount is eligible for deduction under section 80C. A maximum deduction of Rs 1,50,000 can be claimed under section 80C. A basic of Rs 20,000 will help you add Rs 28,800 whereas a basic salary of Rs 30,000 can add Rs 43,200 under EPF to claim 80C deduction.
If you have school going kids, the tuition fees paid by you to any school or even a play school can be claimed as a deduction under section 80C. This includes fees paid for college, university or other educational institution. These days the average tuition fee in a school is roughly Rs 6,000 a month. If you have paid fees for 12 months – this adds up to Rs 72,000 for the whole year. Add that to the total limit allowed under section 80C and you get deduction without any additional investments.
Did you miss submitting medical bills for reimbursement to your employer? If your bills included a preventive health check up those bills can be claimed under section 80D. If you have not exhausted your limit under section 80D for health insurance, you claim deduction up to Rs 5,000 in your Income Tax Return. Or you can get yourself a health check-up now, there are still some days left in March. Unfortunately reimbursements of medical bills can only be done through employer – if you fail to submit bills the employer will deduct tax and pay you the amount of reimbursement in your March salary.
Get tax refund on HRA if you forgot to submit rent receipts. If you didn’t submit rent receipts on time to your employer and TDS has been deducted on your HRA, you can still claim the exemption while filing your Income Tax Return. All is need is your rent agreement and rent receipts, at ClearTax we help you calculate your HRA and the consequent refund.
If your total income less deductions (under section 80) is equal to or less than Rs 5,00,000. You can get a tax rebate of up to Rs 2,000 under Section 87A. Which means if the total tax payable is lower than Rs 2,000, such lower amount of tax will be the rebate under section 87A. This rebate is also available to Senior Citizens. If you file with ClearTax, we give you this rebate automatically.
If you bought a house in financial year March 2013-14, Section 80EE can bring you additional deduction on home loan interest of Rs 1,00,000. Financial year 2014-15 is the last year to claim this deduction. Check if you are eligible to claim this deduction.
Are you undergoing a medical treatment or caring for or supporting a differently abled dependant? Deduction can be claim under section 80DD, 80DDB and 80U. Blindness, chronic renal failure, cancer treatments, treatment for thalassaemia disorder are some of the specified diseases for which the deduction can be claimed.
There are many ways you can still maximize your tax deductions and save on your hard earned money.
This article by ClearTax was also published on Yahoo! Finance.