Most Frequently Asked Question- Can I save tax more than 1.5 lakh_

Tax filing is round the corner. As you would know, the government extended the filing date for income tax filing due to pandemic situations prevailing in the country. Now it’s the time when all the receipts are out and inbox is full of queries to claim the tax-benefit investment.

Now the question that poses confusion to all the taxpayers is Can I save tax more than 1.5 lakh? While the filing section is around, it leads us to ponder upon the various investment plan scheme we have, that are best for the current tax slabs. 

This question- Can I save tax more than 1.5 lakh is bound to torment an individual during every tax-filing season. But with correct tools and the right information, investments can pay off perfectly. First thing first, an individual has to ensure a portfolio catered to various taxability. Also, you need to have a basic understanding of the various income tax slabs.  

Here are the Income-tax slabs under the new tax regime for all individuals for FY 2020-21-

Income tax Slab

Tax Rate

Up to Rs 2.5 lakh


Rs 2.5 lakh to Rs 5 lakh

5% (Also, a tax rebate of INR 12,500 avaliable under section 87A)

Rs 5 lakh to Rs 7.5 lakh


Rs 7.5 lakh to Rs 10 lakh


Rs 10 lakh to Rs 12.5 lakh


Rs 12.5 lakh to Rs 15 lakh


Rs 15 lakh and above


Also, the tax calculated on the basis of these rates will be subject to health and education cess of 4% in order to calculate the final tax payable amount. 

Now that we know the income tax slabs, the next plan is to know the investments which answer the question- “Can I save tax more than 1.5 lakh?”. After understanding the individual lifestyle, a plan can be crafted to know about the different income tax avenues.

The income tax act, 1961 provides several different avenues by way of deductions based on payments, and deductions based on income. These sections aid the taxpayers to reduce their tax outgo every year. Some of the very famous common section in the act include 80C, 80D, 80CCD (1B), 80G,80E, 80GGB, etc 

Saving Taxes on Loans

Before we answer the question, “Can I save tax more than 1.5 lakh?”, let’s explain to you another aspect. If you require a personal loan to start any avenue in life, be it traveling to far off places, funding out a business idea, getting more funds to your business pr infusing money to built put your dream home – personal loans are a good way to go!

With a lot of trusted platform giving us the option, there is absolutely no hassle in getting the loan. Sqrrl is one of the best platforms to get personal loan. It provided instant money without any hassle. Partnered with ICICI bank, HDFC bank, and Fullerton India, it is an absolutely trust worthy application. You can get a personal loan up to Rs. 25 lakhs with minimal documentation and attractive interest rates. So, if you have taken a personal loan for-

1. For Medical Emergency

Life is uncertain and at any point in time, a medical emergency might arise. But don’t you worry. With the expenditure made on medical emergencies like that, the income tax act 1961 provides you the benefit to avail deductions.

2. For Your Higher education 

A higher education loan to study abroad or fulfill your children’s education goals, serves you to tax saves up to the interest amount paid on it. An education loan aids not only to finance foreign students but also helps to save a lot of taxes as well. If you have taken an education loan and are repaying the same, then the interest paid on that education loan is allowed as a deduction from the gross total income as per Section 80E of the income tax 1961. However, the purpose of the loan should strictly be for pursuing higher education for the relative or yourself.

3. For Your Dream House

If you have taken a loan to build your dream house, then income tax act 1961 provides to avail deductions. Section 80EE allows an individual to avail of various income tax benefits on the interest portion paid on the residential house property loan availed from any financial institution, bank, etc. You are entitled to claim a deduction of up to Rs. 50,000 per financial year above other deduction as per this section. Also, on top of it you can also continue to claim this deduction until you have fully repaid the loan.

4. For Buying Your Dream Mode of Transport

Have you been thinking of buying your own vehicle now? Well, you will be amazed to know that the Income-tax act provides you to avail of a tax deduction on the interest amount paid for the electric vehicle you just purchased.

As per Section 80 EEB, a deduction for interest payments amounting to up to Rs. 1,50,000 is available under Section 80EEB. It is only applicable to the individual tax payers in case of a electric vehicle for personal use or for business use. This deduction aids the individuals to facilitate deduction based on interest paid for such a vehicle.

Saving Taxes On Tax-saving Funds & Premiums

So, if you are wondering “Can I save tax more than 1.5 lakh?”, what’s a better way than to invest in funds which aids you to save taxes. In order to reach you get closer to the goal, we have provided a list of tax saving schemes as per various sections given in the Income-tax Act, 1961.

1. Life Insurance premium

Life insurance premium payments can be claimed as deduction under Section 80C subject to a limit of Rs.1, 50,000. The premium should be taken on the life of a spouse, or any child(minor or major), and in case of HUF, any member thereof. This will include a life policy and an endowment policy.

2. For Health Insurance

As per Section 80D of the act, you are eligible to avail a maximum deduction of Rs. 25,000 per annum for premiums paid on the health insurance policy, where such premium is paid for yourself or members of your family. Also, if you are a senior citizen the quantum of the deduction goes up to Rs. 50,000. This section also entails availing additional deductions for various expenses incurred for health check-ups. It includes both, your own, and the parents and other member in the family. The amount of deduction in such cases will be Rs. 5,000.

Also, there is another section in the Income-tax Act,1961 which allows to take a deduction of medical expenses which is 80DD. It allows individuals to claim tax benefits for the expenses incurred on the medical treatment, training, or rehabilitation of a disabled dependant. The dependant should be the spouse of the individual, children, parents, brothers, and sisters of the taxpayer. The tax deduction amount is going to cover the insurance premium paid for the specific plan taken for a disabled dependant.

3. Contribution To SPF/PPF/RPF

Any contribution which is made to the aforesaid scheme will be eligible as a deduction under Section 80C. To brief you about these schemes- RPF or the Recognized Provident Fund scheme is applicable to an organization that employs 20 or more employees. It creates a trust to be invested in a specified manner. The income of the trust is also exempt from income taxes. 

Now, Let’s talk about the SPF or the Statutory Provident Fund (SPF), it is mainly meant for Government or University or any other Educational Institutes which are affiliated to university employees. Moving on to the PPF or the Public Provident Fund (PPF), it is a scheme in which self-employed persons can make a contribution. The requirement is of the minimum contribution of Rs. 500 per annum and the maximum contribution for Rs. 150,000 per annum. 

4. Tax saving Fixed deposit

Under Section 80 TTA, an individual can claim deduction on interest on deposits in saving accounts. It provides an individual, HUF to avail up to Rs. 10,000 while computing the total income of the assessee. However, the account should be maintained with a banking company or a cooperative society or a post office. 

Now we come to the conclusion that there is no alternative to proper financial planning. With a proper plan suiting and catering to your lifestyle and needs, you can easily formulate various schemes to make tax benefit investment and answer the most common question- Can I save tax more than 1.5Lakh?

Hence it becomes imperative to find what is new in the corporate world and figure out a financial plan, recheck the investment portfolio, and start saving taxes. There are various platforms as well like Sqrrl which allows you to invest your money in a judicious way, like in ELSS, mutual funds, provide you personal loans, etc.


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