Save 2.5 Lakh in Taxes: Tips from Finance Influencer, Manav Narang

Looking to save on taxes this financial year? Manav Narang, a digital creator specializing in finance, tech, travel, and more, shares valuable tips on how you can save up to 2.5 lakh in taxes. Understanding the provisions of the Income Tax Act can help you maximize your savings.

Section 80E: Deduction for Interest on Education Loan

Section 80E provides a tax deduction for interest paid on education loans. This benefit is available only to individuals who have taken loans for higher education for themselves, their spouse, children, or a student for whom they are a legal guardian. The interest component of the EMI can be deducted for up to 8 years or until the loan is repaid, whichever comes first. This can significantly reduce your taxable income, helping you save on taxes while investing in education.

Section 10(5): Leave Travel Allowance (LTA)

Leave Travel Allowance (LTA) is a benefit provided by employers to employees for travel within India. It can be claimed for two journeys in a block of four years and is applicable to travel expenses for the individual and their family, including spouse, children, and dependent siblings and parents. The exemption amount is the lower of the actual expenses incurred or specific travel fare limits, such as economy class airfare for air travel or first-class rail fare. This provision allows you to claim deductions for travel expenses, reducing your taxable income.

Section 80EEB: Deduction for Interest on Electric Vehicle Loan

Section 80EEB offers a deduction of up to Rs 1,50,000 on interest paid for loans taken to purchase electric vehicles. This deduction is available whether the vehicle is used for personal or business purposes. To qualify, the loan must have been sanctioned between January 1, 2019, and March 31, 2023. This incentive not only promotes environmentally friendly transportation but also provides substantial tax savings.

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By leveraging these sections of the Income Tax Act, you can make significant savings on your taxes. Manav Narang's tips on Section 80E, Section 10(5), and Section 80EEB offer practical ways to reduce your tax burden while supporting education, travel, and sustainable living. Make sure to consult with a tax professional to maximize these benefits and stay compliant with tax regulations.