ITR - Reducing Taxable Income

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Deal Cadet
sahil1033

I’ll fall short of Rs. 30,000 – 35,000 for FY 2021-22 and end up paying tax of around Rs. 20,000 – Rs. 25,000.

I’ve utilized HRA, LTA from office … stayed in hometown, so, HRA deduction is very less for the FY.

I’ve also utilized 1.5 lakhs from Section 80C and additional Rs. 50k from Section 80CCD(1B).

4L sum insured health insurance is provided from office, no need to take medical insurance from external sources.

Now, in order to save paying tax for that extra taxable income of Rs. 30k – 35k, is there any way to avoid? Around 5-6 days are left, by any means can I save tax and make my taxable income lesser than 5 lakhs?

There are ways like donating under Section 80G but any pointer here that can help me.

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Deal Subedar Deal Subedar
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Take Medical expenses of your Parents (If Senior)

Deal Subedar Deal Subedar
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I can only think of Section 80CCD(2) for employer contribution to NPS if that is possible and you are interested but might be a little late to do that now.

Also there is interest on SB (Section 80TTA(1) ) , interest on education loan (Section 80E), interest on home loan (Section 80EE)

Sorry not related to what you asked but is your old/new tax regime and for the additional amount over 5L, you would be charged higher tax rate right, so how is it 20-25K tax paid ?

Deal Newbie Deal Newbie
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Switch to the new tax regime at the time of filing? Would that help you?

Royal Challengers Bangalore Royal Challengers Bangalore
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Section
80TTA => Max ₹10000 savings account interest
80D => till 6000 OPD medical expenses  + Medical expenses of senior citizens parents (till 50000 I suppose)

Deal Cadet Deal Cadet
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Random123 wrote:

I can only think of Section 80CCD(2) for employer contribution to NPS if that is possible and you are interested but might be a little late to do that now.

Also there is interest on SB (Section 80TTA(1) ) , interest on education loan (Section 80E), interest on home loan (Section 80EE)

Sorry not related to what you asked but is your old/new tax regime and for the additional amount over 5L, you would be charged higher tax rate right, so how is it 20-25K tax paid ?

I missed out on a few things this FY, that’s why in such a situation.

I didn’t take Sodexo benefit, didn’t avail for corporate NPS.

No education loan, no home loan, so, no point there.

I’ve considered everything here, even saving account interest as well. This is the full and final taxable income I’ll arrive at.

Tax regime is old. So, suppose my taxable income is 5,35,000 this FY.
5% on Rs. 2,50,000 = Rs. 12,500
20% on Rs. 35,000 = Rs. 7,000
Total tax = Rs. 19,500 

Deal Cadet Deal Cadet
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Spiderguy252 wrote:

Switch to the new tax regime at the time of filing? Would that help you?

Nope, have several deductions in place, won’t help at all.

Deal Subedar Deal Subedar
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B3A5T wrote:

Take Medical expenses of your Parents (If Senior)

Correct me if i am wrong but aren’t these medical expenses covered under very specific illnesses?

Deal Subedar Deal Subedar
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Diseases or Medical Ailments specified under Section 80DDB
Section 80DDB specifies the following medical ailments and diseases for which tax deductions can be availed:

Diseases that are neurological in nature such as:
Ataxia
Dementia
Aphasia
Dystonia Musculo rum Deformans
Hemiballismus
Parkinson’s Disease
Chorea
Motor Neuron Disease
Chronic Renal Failure
Malignant Cancers
Hematological Disorders such as:
Thalassemia
Hemophilia
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

Deal Subedar Deal Subedar
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any way to save tax on stcg from shares

Deal Lieutenant Deal Lieutenant
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sukant1989 wrote:

any way to save tax on stcg from shares

if you have any unbooked capital loss in your portfolio then book that loss and repurchase those shares after 1 day. 

Deal Cadet Deal Cadet
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just donate to any political party and get cash from them by paying some commission(just check if they are eligible for this kind of donation).. you will get a 100% tax benefit on the donated amount under 80GGB and the party office will get a chance to make their black money to white.. win-win for both

Deal Cadet Deal Cadet
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bring your taxable income under 5 lac and apply for tax rebate as your income is under 5 lac. you will get your 12500 rs back

Deal Newbie Deal Newbie
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hemant_111 wrote:

just donate to any political party and get cash from them by paying some commission(just check if they are eligible for this kind of donation).. you will get a 100% tax benefit on the donated amount under 80GGB and the party office will get a chance to make their black money to white.. win-win for both

this is legally as well as morally wrong and very very risky , if something happens in the future no one is going to question the political party ( toungueout )  , the IT department would come knocking at your door and it would be very hard to justify that extra cash at hand

I am sure donations like already put you on some sort of black list and the ITR department keeps  a strict watch on transactions such as these

Deal Cadet Deal Cadet
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hemant_111 wrote:

just donate to any political party and get cash from them by paying some commission(just check if they are eligible for this kind of donation).. you will get a 100% tax benefit on the donated amount under 80GGB and the party office will get a chance to make their black money to white.. win-win for both

politicians, would like to stay away from them

rather I’ll donate the money for peace of mind smile

Deal Cadet Deal Cadet
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You can take preventive health check-up to completely utilise the 80D.

Deal Cadet Deal Cadet
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Juniper wrote:

You can take preventive health check-up to completely utilise the 80D.

I think that’s additional Rs. 5000 only, right?

Deal Cadet Deal Cadet
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invest in NPS Tire 1. that is the only way remaining.

Deal Subedar Deal Subedar
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pentiumd wrote:

invest in NPS Tire 1. that is the only way remaining.

He already exhausted the limit

Cool Cool
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sahil1033 wrote:

I think that’s additional Rs. 5000 only, right?

its within 25K for self+spouse+children
Not sure if you are married 

Deal Cadet Deal Cadet
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sahil1033 wrote:

I think that’s additional Rs. 5000 only, right?

As per section 80D, a taxpayer can deduct tax on premium paid towards medical insurance for self, spouse, parents and dependent children. Individuals and HUF can claim this deduction. The limit of the deduction varies with age. A deduction of Rs 25,000 is available for self, spouse, and dependent children. – source ClearTax

Deal Lieutenant Deal Lieutenant
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Himanshu1234567 wrote:

Section
80TTA => Max ₹10000 savings account interest
80D => till 6000 OPD medical expenses  + Medical expenses of senior citizens parents (till 50000 I suppose)

it is 5000 not 6000 shayad paji

Deal Lieutenant Deal Lieutenant
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vishyvish1420 wrote:

Diseases or Medical Ailments specified under Section 80DDB
Section 80DDB specifies the following medical ailments and diseases for which tax deductions can be availed:

Diseases that are neurological in nature such as:
Ataxia
Dementia
Aphasia
Dystonia Musculo rum Deformans
Hemiballismus
Parkinson’s Disease
Chorea
Motor Neuron Disease
Chronic Renal Failure
Malignant Cancers
Hematological Disorders such as:
Thalassemia
Hemophilia
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

https://www.desidime.com/discussions/confusion-...

Deal Lieutenant Deal Lieutenant
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Bk100 wrote:

if you have any unbooked capital loss in your portfolio then book that loss and repurchase those shares after 1 day. 

can u explain with example paji

Deal Cadet Deal Cadet
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pentiumd wrote:

invest in NPS Tire 1. that is the only way remaining.

already done

mentioned in original post 🙏🏻

Deal Cadet Deal Cadet
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If Long term holding is sold (having 1lac profit) it shows under taxable income
(yes there won’t be any tax on 1Lac profit but taxable income increases thus the adjustment done till now to keep below 5lac failed )
came to know late about this 😥😅 – checking with calculator on IT website.

Deal Cadet Deal Cadet
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Can you increase the LTA now or get some part of payment as reimbursement from employer?

Deal Cadet Deal Cadet
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High cooperation is required from employer here, If employer can make last minute changes in salary structure and gives you 35000/- as part of salary against bills reimbursement, Otherwise not possiblehttps://cdn0.desidime.com/attachments/photos/755050/medium/Screenshot_20220328-014211.png?1648411962

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