House Rent Allowance (HRA)

This can be one of the key factors that will reduce your tax burden to a major extent. Available exemptions will be for instance minimum amount from actual HRA; rent paid will be 10 percent of your basic salary. You can take benefit of this section even if you are not staying in a rented house for instance if you are staying with your parents or grandparents then you can pay rent to your parents as they don’t have any income source and claim HRA benefit.

Take Home loans

Home loans can help you save your tax efficiently. First inform your employer about the home loan and when you get Form 16 ensure that the interest you pay will be according to the loss shown in House property. The principal component of your loan, is included under Section 80C, which will offer you a of 1,00,000.  In addition to that the interest portion offers a deduction of 1,50,000 separately under Section 24.

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