Tax Savings Tips: Tax Savings Expenses: 5 Less Known Expenses Eligible for Tax Benefits
1- Pre-nursery charges
Everyone knows that your child’s tuition fees are tax-exempt, but if your child is younger, you can also get his or her play school, pre-nursery and nursery fever tax exemptions. The system was launched in 2015. This benefit is available under Section 80C, under which you can get tax exemption up to a maximum of Rs 1.5 lakh. However, it should be noted that this benefit is only available for a fee of up to two children. If the children are twins, the benefit can be extended to three children.
2- Tax exemption on stamp duty is also available
When you buy a new home you have to pay stamp duty and registration fee. You can also get a tax deduction on this. This benefit is also available under Section 80C, in which you can avail tax exemption up to Rs 1.5 lakh in a year. Remember that you should claim this deduction in the same financial year in which you bought the home, as you will not be able to take advantage of it later.
3- Interest paid to parents
If you have taken a loan from your parents to buy a house, you can also avail income tax relief on the interest paid to them. This means that the tax deduction on interest will not be limited to loans taken from banks or housing finance companies. The exemption is available up to Rs 2 lakh under Section 24B. Remember that you must have a certificate to pay interest to parents.
4- Rent paid to parents
If you live in your parents’ home, you can also show them the rent paid and take advantage of the tax on it. You can avail this benefit under Section 10 (13A). Under this, you can claim 50% of the HRA or basic salary received by the company or 10% of your salary and your rent, whichever is less.
5- Cost of treatment of parents
It is well known that medical expenses in old age are much higher than normal. If you can afford these expenses, you can claim a tax deduction on them. This discount is available under Section 80D and under this you can get Rs. Can claim deductions up to. However, if these costs are covered by the health insurance policy, they will not be added to it.
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