How To Save Income Tax In India With No Investment? - YouTube

Press the bell icon while subscribing

so that you will get notification of the latest finance videos

Namaskar, my name is Mukul, and welcome to asset Yogi.

Friends, who does not want to save tax?

A lot of investments are sold by saying that your tax savings will also be done here.

So your returns will be higher multiplied.

Investing in Tax Saving Investments Isn't a Bad Thing

I also did a video, which investment is covered under 80C.

You can watch that video, you will find its link in the description below.

But the question is, the salary we have

According to that, we may be doing some investments automatically.

We are spending some money from which we get a tax rebate

So we might not need to make that tax-saving investment.

So in this video, we are going to see some such points.

We will look at eight such points

where you will not need to make any extra investment

Now according to the latest rule, if your taxable income comes below ₹ 5,00,000

So you have to pay zero tax.

So we will understand this with an example,

Stay tuned in the video.

Music

Our first point is HRA

HRA means house rate allowance.

if you work somewhere so generally there is a component in your salary structure

which we call HRA

So based on HRA you get some tax deduction.

And even if you don't get a salary,

So we have some such provisions based on which you can get a tax deduction.

Let us see both the cases,

First of all, if we talk about Salaried Employees,

So they cover under section 10(13A) And what are the clauses here?

Minimum of actual HRA,

that minimum HRS amount that you get in salary.

The second point is 50% of the basic salary

If you work in any metro city

otherwise,40% basic salary will be calculated if you work in any non-metro city.

The third point is rent "-10%" of basic.

That is, the amount of rent that you are paying above 10% basic

All these three points are calculated

Out of these three, whichever is lower, you get tax reduction on that basis.

Let's understand this with the help of an example.

Suppose there is a person named Rahul.

And Rahul's salary is 60,000 per month.

Its basic component is ₹20,000

He gets HRA around ₹ 12,000

And he is paying the actual rent of his house of ₹15,000.

And here HRA is ₹12,000.

So here we will write ₹12,000 So it's a component

Let's assume that Rahul is working in a big city like Delhi Mumbai

So 50% of basic will be calculated.

It's 50% of basic will be ₹10,000.

And the third component is rent - 10% of basic.

Its rent is ₹15,000 so I will write ₹15,000 here.

10% of basic

That is, what will be 10% of ₹20,000

It will be ₹2,000

If we subtract ₹2,000 from ₹15,000 then it will be ₹13,000.

So which component is the least of these three components?

₹10,000 is the least component. It is ₹ 10,000 per month.

But we have to calculate annual

So we will multiply this by 12, So how much you will get the deduction ?

he will get a deduction of 12,0000.

Here I would like to give you a bonus tip

Many people live with their parents That is, it is family property.

If there is no property in your name

Suppose that property is in your mother's name or your father's name.

So you can pay rent to them.

So in this case, if Rahul is paying the rent of ₹15,000.

So he can pay rent to his mother also.

In such a case, you can deposit ₹15,000 in your mother's account every month.

And you can also file an RTI of your mother.

So we talked about salary class.

If Someone is non-salaried, professional, work on their own

so what are the provisions for them So this is covered under section 80GG.

And here's the minimum of

There are also 3 clauses first is -Rent "-10%" of income

The second component is 25% of income And the third component is ₹5,000 per month

This is your fixed.

So here five thousand per month is a small amount anyway

So generally people fall under five thousand brackets.

So in this case he can get a standard deduction of ₹ 60000

HRA is such a component where you do not need to invest separately

And here you get a tax deduction.

We will take a deduction of ₹1,20,000 in our example.

Then let's see what will be the final calculation of taxes

Our second component is EPF.

it is an investment but you don't have to make any additional investment.

So it is covered under section 80C.

Your overall limit in section 80C is ₹1,50,000.

Generally, The component of EPF is 12% of the basic salary

And dearness allowance is also added for government employees.

So if we go with 12% of basic in our example.

So the basic of Rahul is ₹ 20,000.

So 12% of ₹20,000 becomes 2400.

Rahul will get a deduction of ₹2,400 per month

And if he gets for 12 months, what will be the total component of 12 months?

This is about ₹ 28,800

Here also you do not need to make any additional investment.

Because your EPF is deducted automatically.

The next component is the tuition fees. If you have children

and you pay their tuition fees, keep in mind that this clause is allowed for children only.

It is not for your education or your spouse's education.

Your children's fees are covered under section 80c.

So we talked about the limit of 1.5 lakh overall. So tuition fees are also covered here.

Many people are not aware of it and keep making an extra investment within 80 C.

Only full-time courses are covered here

And Play School Fees, School Fees, College Fees

these are all covered under it.

And per taxpayer can get a tax rebate of two children

If you and your wife, or Your Spouse's Both earn.

So you can claim tax for 4 children of their tuition fee.

Let's take the example of Rahul if his age is around 30 -31 and he has a child

he is paying the fees for his child let say he is paying ₹5,000 per month -(5,000*12)

So how much rebate resulted here?

here he will get a rebate of ₹60,000 He Can claim tax reduction.

The next point is stamp duty and registration charges

If you have bought a house in the current financial year for yourself

So you must have paid its stamp duty and registration charges.

This is also covered under section 80c, many people may not be aware of it.

So if we talk about an example, suppose someone has bought a house.

And his home cost is Rs.50,00,000.

and stamp duty let say 7% is going on currently

So 7%×50 lakhs

So its component came to about 3.5 lakhs.

So 3.5 lakh can be claimed under section 80c

But the overall limit under section 80C is only 1.5 lakhs.

So in one shot, it will cover the entire limit.

But in our case, I am not taking it now.

Let's assume in our example that Rahul has bought a house

but he has not bought a house in the current financial year.

So he will not be able to claim that stamp duty and registration charges

But he may have taken a home loan.

There are a lot of tax deductions available for home loans.

What are the tax deductions for a home loan

First, whatever principal you are paying is covered under section 80c,

And the second is your interest which covers under which section 24

You can claim the interest component of 2 lakh per annum if your property is self-occupied.

If you are living in that house, Now pay attention here

If you are living in a rented accommodation So you will be able to claim HRA.

If you are living on your property then you will be able to claim the interest component

In that case, you will not be able to claim the HRA component

But by chance let's assume your house is in Chennai

But you are living in Delhi

And maybe you are living with your parents in Delhi

So you can claim both the components also.

There is no limit in such a case.

In our case, we assume that Rahul is living with his parents.

and let say he pays them to rent ₹15,000 monthly

And let's say he has a property in Chennai for which he is collecting rent.

And here he may have taken a home loan

Which he will pay the principal in the current financial year.

That's ₹70,000 now, And let's assume that

the interest component is coming in ₹1.5 Lakh in the current financial year.

So how much will he get the rebate? that we will understand in tax calculation

but here his house will be considered as rented out.

So let's say he gets a rent of ₹10,000 per month

So the income from his property We have to multiply that by 12

So ₹1,20,000 income is coming from his property.

We have to consider this too and here we will take a tax deduction in the principal component

And we will take a tax deduction on the interest component of 1.5 lakh also.

We will soon understand how the calculation will be done,

You don't have to make any extra investment in a home loan over and above

You may have already taken a home loan

Our next point is education loan

If you have taken an education loan for higher education

You also get a tax deduction on its interest component.

Let us also understand its important clauses

It is covered under section 80E

And like we talked about, you get tax deductions only on the interest component.

You get this tax reduction only for higher education

That is if you do any degree or course after 12th and for that if you take a loan

So you will get a tax deduction on its interest component

And for whom it is cover for

For your education, for your husband, or your wife

Or you can claim tax deduction even if you have taken education for your children.

You can do this course in India or any foreign country.

In both cases, you will get a tax deduction

And there is no limit on tax deduction

Whatever interest component you are paying You will get a tax deduction on its total.

Maximum 8 years for deduction

So here also we assume that Rahul did MBA.

And took an education loan for that

In the current financial year, the interest amount he is paying

or is going to do So we assume its annual interest of 50,000.

We also note this point.

Our Next point is donations.

Many people donate to the Prime Minister Relief Fund or many different NGOs.

They are also covered under section 80G for a tax deduction

And only if you put money in the prescribed funds then only you can claim

If you give money to any NGO Or give money to any organization.

then he will not be able to claim

Only prescriber's funds are covered under section 80G.

And in some funds, you get 100% deduction and in some 50%

You can claim a deduction of 50% of what you have donated.

And a maximum of 10% of the income you can claim for certain donations.

So Rahul may not have made any donation in the current financial year.

So I am not taking any such amount here.

Our next point is medical treatment

Your treatment incurs some medical cost or you have any dependant

who have any disability or their treatment cost

Some diseases are chronic, this also gets covered

So under section 80DD

You can also claim a tax deduction on the expenses incurred on your dependent

Who has more than 40% of the disability?

₹75,000 deduction is available for 40 to 80% disability

If the disability is more than 80% then you can claim upto ₹1,25,000

There is a similar section which we call 80U.

There we were talking about the dependent, here comes the self-disability.

Must have more than 40% disability.

We can claim a deduction of 75,000 for 40 to 80% disability.

And in more than 80% disability we can claim a deduction of ₹1,25,000

Now which disabilities are covered under it.

You must check this online.

Apart from this, there is another section 80DDB

There are some chronic diseases on which we spend a lot.

If some specific diseases happen to you or your dependents, then that too will be covered.

The actual treatment cost is covered here.

If you have any health insurance and if you are paying its premium.

That premium will not be covered here.

And if you have got some money from health insurance,

then you will have to remove that too.

The rest of the treatment cost will be covered

And on this, you get a deduction of up to 40,000

If the expenditure is less than Rs.40,000, if

there is an expenditure of Rs.20,000.

So you can claim a deduction of 20,000.

And in the case of senior citizens, you can claim a deduction of up to 60,000.

And which diseases are covered here ?

Neurological, cancer, aids, chronic renal failure, Hematologic disorder

You can check its list online

So all these are some points where you do not need to make any extra investment.

But you have a lot of tax deductions available.

Now let us try to calculate in the case of Rahul.

Here I am assuming that there is no medical treatment cost in Rahul's case.

But still, we try to calculate

how much tax will Rahul have to pay

First of all, we talk about his income from the property.

The rental income we saw is ₹1,20,000.

Here 30% tax rebate is available for maintenance.

So from ₹1,20,000 ₹36000 will be reduced

Apart from that, Rahul was paying interest. And here he was paying 1.5 lakh interest

So when we minus the total deduction from 1,20,000,

So its income from the property is ₹-66,000

so we note this

Then how much rebate will be given under section 80c

Its EPF was automatically deducting

So he was getting a tax deduction of 28,800

Rahul is paying a tuition fee of 60,000 every month.

The principal of the home loan is also covered in section 80C

So he is filling up to 70,000.

Here the total amount became 1,58,800.

But you must note that the maximum limit under section 80C is 1.5 lakh.

So he will get a maximum deduction of 1,50,000 only.

We also note this point.

Now let's move on to tax calculation

Let's assume its annual salary

Means he get 60000 per month. So now it's a 12-month package of 7,20,000.

He earns a rental income of 1,20,000

So what is its total actual income?

8,40,000 is his total income.

Now let us see how much tax one pays with an income of 8,40,000.

-66000 is his income is from the property.

So its total income became 6,54,000.

How much he is supposed to get an HRA deduction ?

₹1,20,000

So what will be its income post HRA

Deduction of ₹ 120000 will be deducted So it will be ₹5,34,000

Apart from this, he will get an 80C deduction of 1.5 lakh.

He will also get an 80E deduction because he is also paying some of the education loans.

The interest component was Rs 50,000.

So out of 5,34,000, -2,00,000 will be minus.

So its net taxable income is only ₹3,34,000.

So like we mentioned earlier that in the current financial year

There is no tax till 5,00,000.

If your current taxable income falls below 5,00,000 then

So there is no tax. Rahul will not have to pay any tax.

So in this example, we see that we have many such provisions

Where we don't need to make any extra investment

Still, we can save a lot of tax

I hope you liked this video

So do like and share it.

Maybe this can also help your friends and family members.

If you have any suggestions related to this video or related to this channel,

then you can tell in the comment section below.

if you haven't subscribe to the channel yet then subscribe form below and press the bell icon.

So that you will get notification of the latest video

So see you in the next similar information financial video

Till then keep learning, keep earning -and be happy as always.