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When was it removed, 80c is there in old regime.
Did i miss something?
Did i miss something?
Popular Tax Saving Options (other than 80C included) for 2023
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Popular Tax Saving Options (other than 80C included) for 2023
Checkout some of the Popular Indian ways to Save on Your Income Tax Returns in 2023. These are recommended for Salaried Employees, Senior Citizens, and Small Businesses.
by FighterMan
Updated: 02 Jan, 2023, 18:19 IST
25
7312
Thinking on How to Save on Income Tax in 2023? Well, we have got some Investment Ideas which can be beneficial for Tax Deductions. Also, other than ITR 80C Saving Schemes are included. This guide is for Salaried Professionals, Individual Small-scale Businesses, Senior Citizens, and Freelancers.
Some of the common questions that come across Tax Saving enthusiasts include the following:-
Lock-in period
Tax Deduction types
How Does Income Tax Section 80 Work?
When to start Investments for Tax Savings?
All these questions will be answered in this article so let’s move on.
Firstly, let’s have a look at the Investment options for Saving under ITR Section 80C. These can Save you upto ₹2,00,000 of Taxes in 2023.
PPF (Public Provident Fund)
You can Invest from ₹500-₹1,50,000 in PPF in a year. This is a 15 year long-term tax saving investment plan. You cannot withdraw an amount before 7 years so make a note. You can avail tax deduction for PPF deposits under section 80C of ITR. Also, you don’t need to pay tax on Interest earned under Section 10. The Interest rate here is around 7%.
NPS (National Pension Scheme)
If you age between 18-70 then you can Invest via NPS. This is the best official way to get retirement ready in the future. Also, saves via tax deductions upto ₹2 lakhs under section 80C and 80CCD. Here, you can earn Interest in the range of 9%-12%.
ULIP (Unit Linked Insurance Plan)
An ULIP helps in long-term investments, tax savings, and getting Life Insurance coverage. Here, you get the flexibility to pay premiums. Moreover, you can withdraw some amount at any time. Additionally, it suits low-risk investors with many go-to investing options.
ELSS Mutual Funds
ELSS Mutual Funds are great for both tax savings (upto ₹1.5 lakh) and higher returns (15%-20%). The lock-in period here is 3 years. ELSS stands for Equity Linked Savings Scheme.
Life Insurance
You can opt-in for a whole, universal, or term life insurance. The best time to get it is at a younger age as it not only helps in tax savings but also incur lower premiums. It is recommended as the most important Investment option an Indian must have.
Pension Plans: tax saving options for senior citizens
Apart from NPS, there are many pension plans available from leading firms such as Max Life, SBI Life, LIC, ICICI Prudential, and HDFC Life. Tax deductions here are covered under section 80CCC.
SCSS (senior citizen saving scheme)
If there are seniors (above 60 yrs) in your family then SCSS is a safe tax saving and Investment option. The current ROI here is 8% as the government recently hiked rates. This is a 5-yr plan which can be extended to max 8 years.
NSC (national savings certificate)
NSC is a low-risk and good tax saving Investment option. Rate of Interest is around 7%. This scheme suits best to low and middle income groups. There is a 5-yr and 10-yr Investment option here.
FD (fixed deposits)
You will find FDs in almost all Indian households making it a popular choice among the middle class public. Here, the lock-in period is 5 years and tax savings are limited to ₹1,50,000 per year.
Tax Saving Options other than 80C for Salaried 2022-23
Now, let’s have a look at some of the other Income tax saving options for salaried people which can come in handy when the exemption limit is exceeded.
Tax Saving options (other than 80C) |
Under ITR Section |
Saving Account Interest |
80TTA |
Education Loan Interest |
80E |
Health Insurance policy premium / Senior Citizen medical expenses |
80D |
Home Loan Interest |
24(b) / 80EEA (1st time buyers) |
Home Rent exemption (for salaried employees) |
10(13A) |
Home Rent exemption (if not mentioned in your salary breakup) |
80GG |
Charitable Institution donations |
80G |
Scientific Research and Rural Development donations |
80GGA |
Political Parties or Electoral Trust donations |
80GGC |
Medical Expenses of disabled |
80DD / 80U (fixed deduction based on severity of the disability) |
Medical Ailments |
80DDB |
Resident Senior Citizens Interest on deposits |
TTB |
These were some of the popular ways to save on Income Tax in 2023. However, it is recommended to consult your financial advisor to get the best options based on your income, job/business, preferred risk, and other factors.
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https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003380
kartikxxx wrote:
When was it removed, 80c is there in old regime.
Did i miss something?
Whats the point of old regime when we get lower tax rate with new regime
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003432
Does the stamp duty amount for a property bought in the current FY comes under 80C or for that matter, under any exemption category?
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003522
prtchaudhary6179 wrote:Yes. It comes under 80C.Does the stamp duty amount for a property bought in the current FY comes under 80C or for that matter, under any exemption category?
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003527
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Jigglypuff wrote:There are situations when one can get maximum tax benefit under old regime with investments.Whats the point of old regime when we get lower tax rate with new regime
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003530
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003580
Good post
1
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003583
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Jigglypuff wrote:For the 30% tax bracket, the old regime is the best. The new tax regime is good for income under 10 lakhs.Whats the point of old regime when we get lower tax rate with new regime
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003599
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prtchaudhary6179 wrote:You're welcome
Thanks for clarifying.
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003956
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Jigglypuff wrote:Is sticking to old regime worth it if your are having an income of say 10 lakh+Whats the point of old regime when we get lower tax rate with new regime
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9003958
Any idea under which section school fees can be used
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004126
manohar5321 wrote:80c
Any idea under which section school fees can be used
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004292
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004323
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If not opting for any deduction then new regime is good
PirateOfDeals wrote:Nope - Even old regime is best for income under 10lac if you're utilizing 80C section limit completely
For the 30% tax bracket, the old regime is the best. The new tax regime is good for income under 10 lakhs.
If not opting for any deduction then new regime is good
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004325
How to save tax for salary above 10 lakhs ?
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004499
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004510
Best_Deal_Hunter wrote:I know only - 80c - 1.5 lakhs + 50k nps 80d - medical insurance 10% of basic Nps - through employer Meal vouchers - employer provided Fuel allowance - employer provided + Vehicle purchase/lease plan - employer provided + HRA, Standard deduction.
How to save tax for salary above 10 lakhs ?
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004559
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PirateOfDeals wrote:anyone with income above 5 lacs will utilize it.
If a person is not utilizing 80c then the new regime is good.
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9004884
income tax is a day robbery by the govt without giving any justification to the working crowd.
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9005298
jp295m wrote:You get to live in society so you have to pay tax on it.income tax is a day robbery by the govt without giving any justification to the working crowd.
it is justified enough.
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9005302
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rhlraj32674 wrote:What a dumbshit reason!
You get to live in society so you have to pay tax on it.
it is justified enough.
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https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9005411
jp295m wrote:income tax is a day robbery by the govt without giving any justification to the working crowd.
I don't agree with you rates can be on a higher side but it's a must for a country economy to sustain. Well if want to live in a jungle where you hunt and eat with no other rules and regulations then it's fine. And if as of today income taxes would be stoped then the gap Between rich and poor will increase further in my opinion. A country with no income tax are economies with highly dependent on natural resources like oil. The revenues obtained from these oil rich countries stabilise their economies to a degree that they can do without collecting income tax from their residents.
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9005600
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Jkriz wrote:
Is sticking to old regime worth it if your are having an income of say 10 lakh+
a person earning 40 LPA. lets say.
Not eligible for HRA since (https://www.policybazaar.com/income-tax/save-in...)
- The actual rent paid by the employee for the residence each month Minus (-) 10% of their salary. is negative
He has put 1.5 lakhs in PPF. yearly.
He has no home loan.
He has no anyother investement
he has no investement in NPS or VPF
Now you can check the new regime offers the lesser net tax payment. so 10 lakhs plus logic is flawed
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9005674
80C,NPS etc. is savings only. If you are not opting it then you are giving it to govt in form of tax. Lower tax is a myth.
Check yourself -
https://www.desidime.com/news/popular-tax-saving-options?page=1#post_9005769
PirateOfDeals wrote:
80C,NPS etc. is savings only. If you are not opting it then you are giving it to govt in form of tax. Lower tax is a myth.
Check yourself -
my point is despite opting for 80c ppf , the tax is higher on the old regime , you can compare. I dont think even additional 50k from NPS will make a diff to the example i shared above. new regime still will win
For 40LPA old vs new ( total deduction 2 laks( 1.5 ppf + 0.5 sd)
if the total dedcution is more than 2.5 laks then only it make sense to opt for old regime for a 40 lakh income
| Annual Income of Rs.15,00,000 (with exemption) | ||||
| Annual Income | 1500000 | |||
| Exemptions u/s 80C | -150000 | |||
| u/s 80CCD(1B) | -50000 | |||
| u/s 80D | -75000 | |||
| Taxable Income | -1225000 | |||
| Old Regime | New Regime | |||
| Income tax slab | Tax Rate | Tax (Rs.) | Tax Rate | Tax (Rs.) |
| Up to Rs.2,50,000 | 0 | 0 | 0 | 0 |
| 250001 – 500000 | 5 | 12500 | 5 | 12500 |
| 500001 – 750000 | 20 | 50000 | 10 | 25000 |
| 750001 – 1000000 | 20 | 50000 | 15 | 37500 |
| 1000001 – 1250000 | 30 | 75000 | 20 | 50000 |
| 1250001 – 1500000 | 0 | 0 | 25 | 62500 |
| Sum | 187500 | 187500 | ||
| Health and education cess | 4 | 7500 | 4 | 7500 |
| Tax payable | 1,95,000 | 1,95,000 | ||
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income tax is a day robbery by the govt without giving any justification to the working crowd.