Every month I am paying 30% tax on my salary .I have invested in PPF,NPS,EPF L,MEDICLAIM,LIC and also HRA. I have utilised the maximum benefits available in all sections.Still the amount of tax I have to pay is humongous. Can u please let me know if there is any other financial products that I should invest to save more tax

Ans: Hi Kalim, There are multiple tax saving options you can use.  Following are few of the popular tax saving options available:

You can save tax up to 1.5 lakhs under section 80C by investing in PF, PPF, ELSS, ULIP, Insurance, home loan principal repayment, etc

Investing in NPS helps you to save further of 50k under section 80CCD which is over and above 1.5 lakhs under section 80C.

Section 80D provides income tax deduction on medical insurance premium paid for self and family. You can claim up to 25,000 for premium paid for self, spouse and kids. In case of senior citizens the limit is 50k.

If you have a home loan, you can also claim tax deduction on the interest paid towards home loan. You can claim deduction for up to 2 lakhs for the interest paid.

Further you can claim the contributions made to certain relief funds and charitable institutions under section 80G.

Ans: Since you have covered many of the commonly used tax saving options, the few available exemptions/deductions are:

1. Tax saving on home loan interest paid, under Section 24, upto Rs 2 lakhs
2. Tax savings on interest repayment on a home loan for first-time owners, under Section 80EE, upto Rs 50,000 (the value of the house to be less than Rs 50 lakhs and the loan less than Rs 35 lakhs) over and above the deduction of Section 24 above.
3. HRA/tax savings on rent paid in cases where HRA isn't paid under Section 80GG, upto Rs 60,000 in a financial year (deduction is not applicable to taxpayers who own a house, but live in a rented house in the same city). It cannot be availed by taxpayers who own a house in another city and claim tax deduction under Section 24 towards repayment of home loan interest on that house)
4. Leave Travel Allowance under Section 10 (5) for domestic travel
5. Tax savings on interest earned from savings bank accounts under Section 80TTA, for a maximum limit of Rs 10,000
6. Reimbursements: You need to check with your company on the various reimbursements possible, like medical, transport allowance, food coupons, vehicle reimbursement, etc

 

Ans: Dear Praveen,

Thank you for your question. I understand that you're looking for tax-saving options under the new tax regime. While the new tax regime does limit some of the deductions available under the old regime, there are still a few options you can consider.

Standard Deduction: A fixed amount of Rs. 50,000 is allowed as a deduction from the total income of salaried individuals. Please note that if you claim this standard deduction, you cannot claim any other deduction for the same amount under any other section of the Income Tax Act.
Employer's Contribution to NPS: If your employer contributes to your National Pension Scheme (NPS) account, this contribution can be claimed as a deduction.
Transport Allowances for Persons with Disabilities: If you have a disability, you may be eligible for deductions related to transport allowances.
Gratuity: If you receive a gratuity from your employer, it may be exempt from tax under Section 10(10).
Leave Encashment: If you receive any amount in lieu of leave not taken, it may be exempt from tax under Section 10(10AA).
Please remember that tax planning should be a part of your overall financial planning. It's important to choose the options that best suit your financial goals and circumstances. If you need more detailed advice, I would recommend consulting with a tax advisor who can provide guidance based on your specific situation.

I hope this helps!

Ans: Interest paid on Home Loan is also exempt under the new tax regime. You may plan for that.
I feel in your case old regime may not be beneficial even after all tax savings under 80-C, 80-D & 80CCD(1b).
Most welcome for any further clarifications. Thanks.