- Date : 29/10/2022
- Read: 3 mins
The Old Income Tax Regime requires the person to pay Rs. 13,208 as a tax on this amount. However, if an individual avails an additional Rs. 1,000 deduction, they can save the whole tax amount.
You can save income tax more in some other ways if you have exhausted all expenditure and tax-saving investments. People sometimes pay significant taxes because they want additional options for tax-saving once they exhaust all tax-saving options. The options can be Rs. 1.5 lac Section 80C option, 80CCD(1b) up to Rs. 50,000 option, etc. The taxable income of an individual reaches Rs. 5,01,000 after availing maximum deductions under sections 80TTA/80TTB, 80D, 80CCD(1b), and 80C.
The Old Income Tax Regime requires the person to pay Rs. 13,208 as a tax on this amount (Rs. 5,01,000). However, if an individual avails an additional Rs. 1,000 deduction, they can save the whole tax amount. Once you have exhausted all the options, you can do some charity to save more tax under section 80G. You can get tax benefits if you make donations before the financial year ends.
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Here Are The Details
You can get deductions if you make charity donations. You need to have the following details before writing that donation cheque:
- Pan of Donee
- Address of Donee
- Name of Donee
When you mention these details while filing your income tax return, you will get a deduction. You must also collect the receipt, which will mention the amount you decided to pay, along with the mode of payment details.
The change in rules suggests you cannot avail of deductions for over Rs. 2,000 donations after the 2017-2018 financial year if you used cash. Only the donations made using modes other than cash will be allowed to qualify for Section 80G deduction. Previously, this amount was Rs. 10,000.
Section 80G has specified donations eligible for deductions under Section 80G. These can be deductions of 100%, 50%, or no restriction.
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List of 100% Deduction Donations (Not Exhaustive)
- Prime Minister’s National Relief Fund
- Fund set up by a state government for medical relief to the poor.
- National Cultural Fund
- National Illness Assistance Fund
- National Sports Fund
- National Children’s Fund
- Clean Ganga Fund (applicable from FY 2014-15)
- Swachh Bharat Kosh (applicable from FY 2014-15)
- Africa (Public Contributions – India) Fund
- Prime Minister’s Armenia Earthquake Relief Fund
List of 50% Deduction Donations (Not Exhaustive)
- Rajiv Gandhi Foundation
- Indira Gandhi Memorial Trust
- Prime Minister’s Drought Relief Fund
Also Read: Best tax-saving investments.
These are the additional ways you can use to save your income from taxes. You have probably exhausted the most common tax-saving options, and these are some other options that will come in handy.