The Ultimate Guide to Tax Saving Tips: How to Lose Money Like a Pro
In a shocking turn of events, the new tax regime has become the default option for filing income tax returns. This means that as a new taxpayer, you will automatically lose more money than ever before! While some people still cling to the old tax regimes like a security blanket, there are plenty of ways to expertly squander your hard-earned cash under the new regime.
Deduction under NPS: Not So Personal Savings
Section 80CCD(2) offers a deduction for the employer’s payment to NPS, but alas, this benefit is exclusively for salaried employees. Self-employed individuals, sorry, you’re out of luck! Employers can generously contribute to NPS even if they’ve already thrown money into PPF and EPF funds. Remember, the more they give, the more you lose!
Home Loan: A House of Tax Deductions
Feel like you’re not losing enough money yet? Fear not! The total yearly income spent on repaying the principal borrowed amount is a golden opportunity for Section 80C deductions up to Rs 1.50 lakh. Section 24(b) kindly exempts the interest component of a home loan from taxation, allowing you to lose even more money without the hassle of paying taxes on it. And if you decide to rent out your newly bought house, you can deduct the entire interest component from your rental revenue. Who said losing money couldn’t be profitable?
Agniveer Corpus Fund: Losing for a Cause
Under Section 80CCH(2), the contributions to the Agniveer Corpus Fund by employees and the central government are eligible for deduction. Because why not lose money for a good cause?
Family Pension: Losing Loved Ones, Losing Money
The heartwarming term ‘family pension’ refers to the sum paid by the employer to the employee’s family in the unfortunate event of the employee’s demise. Section 57(iia) of the family pension allows a deduction of either one-third of the employee’s income or Rs 15,000, whichever is lower. Losing a family member has never been more financially rewarding!
Conveyance Allowance: Losing Money on the Go
From FY 2018-19 onwards, the exemption permitted for conveyance allowance is Rs 1,600 per month and Rs 3,200 per month for a physically challenged employee commuting from home to work. Losing money while commuting has never been easier!
Other Deductions: Losing in Style
Certain exemptions under Section 10(14) were not allowed under the new tax regimes, but fear not, there are still plenty of ways to lose money, including voluntary retirement schemes, gratuity under Section 10(10), and leave encashment. Because losing money is a timeless art!
Now that you’re armed with these expert tips on how to lose money like a pro, go forth and embrace the new tax regime with open wallets!
