How to reduce taxes without investing?
People use a variety of methods to save money on taxes. Some people are constantly doing computations to save money on taxes. Invest in areas where you will be exempt from paying taxes.
Allowance for house rent
If you reside in a leased home, you may be eligible for HRA. The HRA allowance will be entirely or partially exempted under section 10. If you live with your parents, you can also benefit from a tax break by paying them rent.Fees for children
Children's fees and hostel costs can be a wonderful way to avoid paying taxes. Spending on your children's education qualifies you for an income tax exemption under section 10(14).Tax-free education allowances of up to Rs 1200 and hostel expenditures of up to Rs 3600 per year are available to families with up to two children. Aside from that, you can obtain a tax break under section 80C on tuition fees up to Rs 105 lakh for your children.
Payment on a mortgage
You can get an exemption under section 80C by paying the principal amount of your house loan. You can get 1.5 lakh rupees from this. It should be emphadata-sized, however, that such a property (home) cannot be sold within 5 years of taking possession.Medical expenses
Medical insurance premiums and health examination charges are tax-deductible up to Rs 25,000 under section 80D. You will receive an extra tax exemption of Rs 25,000 if you also pay medical insurance premiums for parents over the age of 60.