If you have invested 1.5 lac under section 80 c for tax saving, still you are supposed to pay tax. Then we will tell the list of expenses where if the expenses is made then the expenses are tax free. Those expenses are listed below.
4 Expenses which are tax-free are rent given to parent, donations to political party,interest paid to education loan,disability.
4 expenses which are tax free:
Rent given to parents:
If you are living with your parents then you can show that you are paying rent to your parents .In this way by paying rent to your parents you can take the benefit of Housing Rent Allowance (HRA) exemptions Act. To get the benefit the property need to be registered in the name of your parent. Secondly you must be staying with your parent and you must do agreement with your parent that you are paying rent to your parent. In this way the rent paid to your parent is tax free.
According to income tax act 80 C if the tax payer suffers from any disability .In that case he/she depending upon the percent of the disability avail the tax deduction. The tax deduction under disability is Rs 50,000.It mean that from the taxable income Rs 50,000 will be deduced due to disability. To avail this tax deduction of Rs 50,000, the disability percentage must be minimum 40 percent. If the disability percentage is above 80% ,in that case the tax deduction would be Rs 1,00,000/-.
Donation given to political party:
Most of the people don’t know that if they are giving donation to the political party, in that case the donation amount would be tax-free. The is no upper limit of tax deduction on the donation made to the political party. It means that whatever the amount is paid to the political party as donation is totally tax free. You can avail the tax benefit under income tax act 80 GGC, in case you have given donation to the party fund. If you have given the donation to any party person, in that case you cannot avail the tax benefit. It must be party fund.
Interest paid to the education loan:
Most of the student takes education loan for higher studies. The interest paid for that education loan is free from income tax. You can avail this tax deduction under income tax act 80 E for yourself, wife or your Kids. To avail this tax benefit you need to take education loan. You can take the advantage of tax deduction under education loan for consecutive eight years. The best part is that whatever the interest is paid against the education loan is totally tax free.