Money Saving Tips? Everyone wants these!
There is a feeling of joy if you are able to save a few bucks/make a few bucks by doing nothing .
As they say “Time is money , so is knowledge”. A few money-tips are given below which may make a few bucks/ help save a few bucks for you.
- Not everyone is aware of the fact that capital losses, if any, can be balanced off against gains. For example, if you have made a long-term capital gain of Rs 10 lakh by selling off your property and long-term capital loss of Rs 2 lakh by selling stocks/shares, the total taxable amount would Rs 8 lakh.
- It is important to note that short term losses can be balanced off against both short term as well as long term capital gains. However, long term capital losses can only be balanced off against long term capital gains.
- Income tax allows a deduction of Rs 40,000 (Rs 60,000 in case of senior citizen) per year, under Section 80 DDB. Dependents include siblings, children, parents and spouse.
- This deduction is available for specific diseases. In order to claim this deduction, it is important that the patient should be dependent on the taxpayer, and should not have filed for such a deduction separately.
- If you have donated to a political party, you are eligible to claim a tax deduction ranging from 50- 100 % of the amount under Section 80GGC for individuals and Section GGB for corporate organisations.
- One can contribute up to 10 percent of one’s gross total income to a political party.
- Common tax savings options like medical benefits, HRA, Home Loan EMIs etc. can help you save a considerable amount of tax every year.
- Under Section 80D, premiums for insuring the health of self, spouse and dependent children are eligible for up to Rs 15,000 deduction in a financial year.
- Paying for immediate family’s cover makes you eligible for an additional deduction of up to Rs 15,000.
- If at least one of the insured is above 60 (a senior citizen for tax provisions), the deduction limit in that case is Rs 20,000.
- You can avail of deduction up to 50-100 % of donations made to charitable institutions under Section 80G.
- Donations to institutions engaged in scientific research or rural development qualify for deductions under Section 80 GGA
- Tuition fees for up to two children can be claimed as deduction under Section 80C
- Keep those medical bills/pharmacy bills handy; You can reduce your tax liability by 15000/year.
- You are entitled to tax-free LTA (limited to two times in four years)
- Declare your taxes in advance at the beginning of financial year else employer may deduct more TDS than you should pay. You can claim excess TDS but it will take time and effort also you lose interest on excess TDS.
- You can also pay lower tax all the year and pay the taxes at the end of the FY, This way you would earn interest on the tax-money. Smart tip,no?