Aditya Birla Sun Life Insurance Company Limited
Plan Smarter, Live Better!
Thank you for your details. We will reach out to you shortly.
Currently we are facing some issue. Please try after sometime.
It's that time of the year again. You know - calculating your taxes, checking if you're eligible for a refund, and more importantly, paying any income tax that may be due.
Speaking of, did you know that you could easily reduce your income tax liabilities with just a little bit of planning? Yes, that's right.
The Income Tax Act, 1961, offers taxpayers many different ways to save tax and reduce their financial burden. All you need to know is what provisions of the Act to use. And that's what we're going to help you with in this guide.
So, want to save tax? Here are 7 easy ways to do that.
Are you a salaried person living in a rented place? In that case, there are two provisions in the Income Tax Act, 1961 that can help you use the rent to save tax.
Section 10(13A): If your salary includes House Rent Allowance (HRA)
Section 80GG: If your salary does not include House Rent Allowance (HRA)
If your employer does not give you a House Rent Allowance, you can make use of section 80GG to save tax. Under this section, you can claim the least of the following as a deduction:
Not a tenant? Don't worry. Living in your own home also comes with tax benefits* if you're currently repaying a home loan.
Thanks to section 24 of the Income Tax Act, you can get a deduction on the interest payments you make each year. Here are the details:
Insurance premiums are among the easiest tax-saving tools. This is true for both life insurance and health insurance.
Life insurance premiums: Section 80C of the Income Tax Act, 1961
Have a life insurance policy? You can claim the premiums you pay each year as a deduction from your total income. That will bring down your total taxable income, and thereby also reduce your tax liability. Simple as that!
Here are some key things to note here:
You can claim premium payments up to Rs. 1.5 lakhs as a deduction under this section.
Health insurance premiums: Section 80D of the Income Tax Act, 1961
The premiums you pay for health insurance plans are also deductible - as per section 80D. Here's what you should keep in mind here:
The benefits under section 80C are not just limited to insurance premiums alone. A range of other investments and expenses can also be claimed as deductions under this section. Keep in mind though, that the collective upper limit for deductions under this section is Rs. 1.5 lakhs.
Want to know more about the investments and expenses that qualify for deductions under section 80C ?Here's an illustrative list.
Investments and expenses aside, did you know that something as simple as saving up some money in your bank account can help you save taxes?
When you keep some money in your savings bank account, you earn interest on this amount, right? Now, this interest on your savings account can be deducted from your total income - thus reducing your total taxable income.
Here are some things to keep in mind about this tax-saving provision:
If you're a salaried employee, you have another reason to rejoice. There is a standard deduction with a limit of Rs. 50,000 applicable for all salaried taxpayers.
You can claim this deduction from your total salary, ultimately reducing your total taxable income that way.
Budget 20-21 saw the introduction of an optional new tax regime. So, each year, before you file your income tax return, you can choose between the old and new tax regimes. The new regime is different in two key ways:
Want to save taxes and also enjoy the benefits of insurance or investment simultaneously? Tax-saving plans may be just what you're looking for. Our blog on the top tax-saving plans in India can help you save taxes further.
Read it here
If you thought that insurance plans gave you benefits only after the premiums payment term, think again. With the ABSLI Vision LifeIncome Plus Plan (UIN: 109N131V01), you don't have to wait so long.
You get to enjoy guaranteed regular income PLUS cash-in-hand - even while you're still paying the premiums.
Plus, you can use those premiums to help you save tax*! Talk about three benefits in one.
Know More
Thank you for your details. We will reach out to you shortly.
Thanks for reaching out. Currently we are facing some issue.
Buy ₹1 Crore Term Insurance at Just ₹575/month1
Life cover up to 100 years of age.
Joint Cover Option
Inbuilt Terminal Illness Benefit
Tax Benefit^
Return of Premium Option~
Life Cover
₹1 crore
Premium:
₹575/month1
Guaranteed returns after a month¹
Get the latest product updates, company news, and special offers delivered right to your inbox
Stay connected for tips on insurance and investments