{"id":302,"date":"2020-09-01T14:13:00","date_gmt":"2020-09-01T08:43:00","guid":{"rendered":"http:\/\/www.financialhospital.in\/blog\/?p=302"},"modified":"2021-06-29T12:47:23","modified_gmt":"2021-06-29T07:17:23","slug":"know-how-to-save-taxes-by-claiming-expenses","status":"publish","type":"post","link":"https:\/\/blog.fintoo.in\/blog\/know-how-to-save-taxes-by-claiming-expenses\/","title":{"rendered":"Know How To Save Taxes By Claiming Expenses"},"content":{"rendered":"\n<p>For many people, tax planning is all about how to save taxes. However, there are various sections under the Income Tax Act of India in which you can claim specific expenses as deductions. To reduce taxes it is not only important to invest but it is important to properly arrange financial affairs as well. To reduce the tax burden for its citizens, the Indian Government each year through the budgetary proposal introduces legitimate ways to save on tax.<\/p>\n\n\n\n<p>It is important for every taxpayer to know which all expenses are allowed as a deduction for tax planning purposes. Let us discuss a few of the common expenses that can be claimed as deductions under various sections of the Income Tax Act in India.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Children Tuition Fees<\/strong><\/h4>\n\n\n\n<p>Taxpayers are allowed to claim tuition fees paid on two children\u2019s education in a Financial Year. Under section 80C of the Income Tax Act India, you can claim up to Rs.1.5 lacs as a deduction towards the actual tuition fee paid for dependent children. You can claim tuition fees paid for two dependent children. However, both husband and wife have a separate limit. Therefore, if both are working, each parent can claim to benefit for up to two children.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span style=\"font-weight: 400;\"><strong>Stamp duty and registration charges paid on the purchase of a new house<\/strong><\/span><\/h4>\n\n\n\n<p>Stamp Duty and Registration Charges are major cost components of a new house purchase. It\u2019s around 8% to 10% of your new house cost. To incentivize taxpayers, the Government has included stamp duty and registration charges as an eligible deduction from the total income under section 80C of the income tax act.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span style=\"font-weight: 400;\"><strong>Expenses incurred on specified diseases like AIDS, Cancer<\/strong><\/span><strong> or other neurological diseases<\/strong><\/h4>\n\n\n\n<p>Under section 80DDB a taxpayer can claim an amount spend on medical treatment of self or dependent on specified diseases like AIDS, Cancer, or other neurological diseases. The point to remember here is the condition to receive such tax benefit is that there is no medical reimbursement by any insurance company or employer for this amount. The maximum limit on tax benefit is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>The maximum limit on tax benefit<\/strong><\/td><td><strong>A.Y. 2019-20 onwards till date<\/strong><\/td><\/tr><tr><td><span style=\"font-weight: 400;\">Individual below &lt; 60 Age<\/span><\/td><td><span style=\"font-weight: 400;\">40,000<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400;\">Individual above &gt; 60 Age but below &lt; 80 Age&nbsp;<\/span><\/td><td><span style=\"font-weight: 400;\">100,000<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400;\">Individual above &gt; 80 Age<\/span><\/td><td><span style=\"font-weight: 400;\">100,000<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The amount allowed as a deduction is the least of the above-specified amount or actual amount spent.<\/p>\n\n\n\n<p>Must read: <a href=\"https:\/\/www.fintoo.in\/blog\/8-life-events-financial-planning-mandatory\/\" target=\"_blank\" rel=\"noreferrer noopener\">8 Life Events Where Financial Planning is Mandatory<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span style=\"font-weight: 400;\"><strong>Medical Expenses incurred on expenses on disabling dependent<\/strong><\/span><\/h4>\n\n\n\n<p>To provide relief to a taxpayer who has a <span style=\"font-weight: 400;\">disabled dependent or dependent with a severe disability can seek a tax deduction for expenses on medical treatment or amount deposited under a prescribed scheme for the maintenance of the dependent. Under section 80 DD for F.Y. 2020-21, if the disabled dependent is suffering from 40% or more disability, a maximum limit on amount can be claimed as a deduction is Rs. 75,000\/- and the same for a disabled dependent who is suffering from severe disability i.e. 80% or more disability, a maximum limit on amount can be claimed as the deduction is Rs. 125,000<\/span>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.fintoo.in\/blog\/wp-content\/uploads\/2021\/06\/MEDICAL.jpg\" alt=\"\"  width=\"612\" height=\"436\" class=\"wp-image-11625 no-lazyload\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span style=\"font-weight: 400;\"><strong>Deduction for rent paid by an individual<\/strong><\/span><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">Section 80GG can be claimed as a deduction for rent paid subject to some condition.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">You get the lowest of the following values as tax-free deduction <\/span><\/p>\n\n\n\n<ol><li><span style=\"font-weight: 400;\">Rs. 5000 per month<\/span><\/li><li><span style=\"font-weight: 400;\">25% of total income (total income is calculated excluding capital gains and other deductions)<\/span><\/li><li><span style=\"font-weight: 400;\">Actual rent exceeding 10% of income (income would be calculated excluding capital gains and other deductions)<\/span><\/li><\/ol>\n\n\n\n<p>Even if you are a self-employed professional, businessman, or salaried individual you can claim 80GG benefit. The most important condition to claim benefit under this section is you should not have received HRA benefit during the years and you must pay rent for the house you reside in. There are few more important conditions to be fulfilled to get the benefit under section 80GG. The amount is rather small but a rupee saved is a rupee earned.<\/p>\n\n\n\n<p><em>A financial planning platform where you can plan all your goals, cash flows, expenses management, etc., which provides you advisory on the go. Unbiased and with uttermost data security, create your Financial Planning without any cost on:&nbsp;<a href=\"http:\/\/bit.ly\/Robo-Fintoo\" target=\"_blank\" rel=\"noreferrer noopener\">http:\/\/bit.ly\/Robo-Fintoo<\/a><\/em><\/p>\n\n\n\n<p><em>To Invest and keep regular track of your portfolio download: Fintoo App Android&nbsp;<a href=\"http:\/\/bit.ly\/2TPeIgX\" class=\"broken_link\">http:\/\/bit.ly\/2TPeIgX<\/a>&nbsp;\/ Fintoo App iOS&nbsp;<a href=\"http:\/\/apple.co\/2Nt75LP\">http:\/\/apple.co\/2Nt75LP<\/a><\/em>\u2018<\/p>\n\n\n\n<p><em><strong>Disclaimer:<\/strong>&nbsp;The views shared in blogs are based on personal opinion and does not endorse the company\u2019s views. Investment is a subject matter of solicitation and one should consult a Financial Adviser before making any investment using the app. Making an investment using the app is the sole decision of the investor and the company or any of its communication cannot be held responsible for it.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For many people, tax planning is all about how to save taxes. However, there are various sections under the Income Tax Act of India in which you can claim specific expenses as deductions. To reduce taxes it is not only important to invest but it is important to properly arrange financial affairs as well. To [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11628,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[403],"tags":[256,98,425,440],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Know How To Save Taxes By Claiming Expenses - Fintoo Blog<\/title>\n<meta name=\"description\" content=\"All you need to know How To Save taxes? 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However, there are various sections under the Income Tax Act of India in which you can claim specific expenses as deductions. To reduce taxes it is not only important to invest but it is important to properly arrange financial affairs as well. 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