Best Ways To Save Tax Other Than Section 80C? one of the hottest topics among taxpayers these days. As per the Income Tax laws of India, anything received by a person in monetary terms is treated as an income of that person. The income of source could be salary, income from house rent, a gift from relatives, income from house rent, and many more. Further, if this income exceeds the exemption limit, then the person will have to pay taxes and file his Income Tax Return. In this blog, we will discuss how much tax can you save apart from claiming deductions under Section 80C.
Also read: How to Save Income Tax in India?
Details Of Income From Sources And Their Limits.
Salary
Every salaried individual can save taxes on income of flat Rs. 50,000 by way of Standard Deduction on his taxable income. This amount of standard deduction is not dependent on any of the expenses of the individual. Earlier the limit of standard deduction was Rs. 40,000 but from Financial Year 2019-2020, it has been increased to Rs. 50,000/-..
| Source of Income | Income (in Rs.) | Taxable Amount (in Rs.) | Limit | Benefit Value (in Rs.) |
| Salary | 5,00,000 | 4,50,000 | 50,000 | 50,000 |
Income from interest on savings interest
Interest in the savings account is treated as “income from other sources” and is added to the total income of the person. However, as per Section 80TTA, an individual below the age of 60 years can save taxes on income of up to Rs. 10,000 on this income earned from interest on the savings account.
| Source of Income | Income (in Rs.) | Taxable Amount (in Rs.) | Limit | Benefit Value (in Rs.) |
| Savings Interest | 12,000 | 2000 | 10,000 | 10,000 |
Income from House Rent
As per Income Tax Act, the rental income of a property is taxed under Section 24 in the hands of the owner, under the head’s income from house property. However, the rent earned by letting out vacant land is not taxed under this category but is taxed under ‘income from other sources. If an individual receives income from house rent, then he is allowed to deduct the municipal taxes payable for the property. As the rent is taxable on the accrual basis, the law allows an individual to claim a deduction for the rent which he has not been able to realize, subject to the fulfillment of certain conditions. After deducting the above two items, what is left is the annual value, on which a standard deduction of 30% of the annual value can be claimed and tax can be saved.
| Source of Income | Income (in Rs.) | Taxable Value (in Rs.) | Limit | Benefit Value (in Rs.) |
| House Rent | 4,00,000 | 2,80,000 | 30% | 1,20,000 |
Gifts
As per the Income Tax laws, gift (cash or in-kind) is also treated as “income from other sources” and is taxable if the value of the gifts exceeds Rs. 50,000/-. If the money given as a gift is above Rs. 50,000, then the whole amount becomes taxable and not the amount beyond Rs. 50,000/-
| Source of Income | Income (in Rs.) | Taxable Amount (in Rs.) | Limit | Benefit Value (in Rs.) |
| Gift | 40,000 | – | 50,000 | 40,000 |
| Gift | 60,000 | 60,000 | 50,000 | – |
Gifts from specified relatives
As stated in the above point, money in the form of a gift is treated as “income from other sources” and is taxable under the Income Tax Act. However, if the gift has been received from the specified relatives, then the whole amount of the gift is exempted from Income Tax.
These specified relatives are spouse, father, mother, brother, and sister. They also include any lineal ascendant or descendant of the individual or his spouse as well as brother/sister of the spouse.
However, note that even though the gift itself is exempted in the hands of the recipient, the income generated from the gift may be taxable under the clubbing of income provisions of the Income Tax Act.
| Source of Income | Income (in Rs.) | Taxable Amount (in Rs.) | Limit | Benefit Value (in Rs.) |
| Gift from specified relatives | 1,00,000 | – | Full amount | 1,00,000 |
Final Thoughts
Saving Invome Tax is every taxpayers head ach. many tax payes do investments to save tax under 80C. there are some other ways to save income tax. in this blog we discussed Best Ways To Save Tax Other Than Section 80C. I hope you will get an ideas about tax saving other than 80C.