Save Tax Without Saving or Investing.
                     Save Tax Without Saving 
or Investing
Introduction
• There is a typical thinking that we have to save and invest our money to save tax. 
• But, truth be told, there are some tax provisions those can assist somebody with 
tax-saving without making any investments. 
• Let’s discuss them one by one.
Education Fee
• As per Section 80C of the Income Tax Act, 1961, such as ELSS, PPF or NSC, 
 education fees of children paid to their school, college, or any other educational 
institution in India qualify for deduction under this section. 
• But, the exemption should not exceed the overall limit of INR1.5 Lakh per the one 
year period.
Home Loan
• Home loan EMI including principal and interest are eligible for deduction under the 
various sections of the Income Tax Act, in India.
• But, again the overall limit is INR1.5 Lakh.
Education Loan
• As per Section 80E, if you have taken any education loan for the higher education, 
where the loan may belong to yourself or spouse or children, then you can get the 
benefits.
• But the deduction is on the interest only, not on the principal and time limit is 8 
years.
House Rent Allowance
• As per under section 80GG, If your employer is not 
providing you HRA and being a salaried employee you 
are paying your own rent, then for that you can avail 
tax benefits.
• The maximum amount of deduction you can avail 
should not exceed INR60,000.
Reinvesting the PPF
• You can withdraw lower of 50% PPF money available at the end of 4th year 
immediately preceding the year of withdrawal from 7th year of PPF creation. 
• You can, then reinvest the withdrawn money into PPF or on other instruments as 
per section 80C.
Reinvesting the Mutual Fund
• You can sell mutual fund after three years of investment and reinvest them on tax 
saving schemes as a fresh investment. 
• This process can be redone after three years of investment.
Benefits from Fix Deposit
• After getting some money from premature withdrawal of fixed deposit, invest in 
tax-saving fixed deposits, which comes with five year lock period to avail tax 
deduction as per Section 80C with the limit of INR1.5 Lakh.
Donations
• Good news is that one can avail save tax by making donations for charity, social or 
philanthropic causes under section 80G.
• Only limitations is that the cash donations exceeding INR2000 will not be allowed 
as deduction under section 80G after Financial Year 2017-18. 
Conclusion
• Certain deductions have been permitted under the Income Tax Act 
through which availing tax benefits without saving or investing is possible.
• Be that as it may, in order to get the benefits, legitimate expense planning 
is advisable during the year.
Source: Business Today