Go green: A guide to tax benefits for zero-waste living
What's the story
Choosing a zero-waste lifestyle is not only good for the environment, but it can also be great for your wallet under the Income Tax Act of India.
This article focuses on how you can take advantage of tax deductions and incentives by making eco-friendly choices.
Whether it's investing in green tech or making donations, these options can save you a lot of money while helping to create a healthier planet.
Green investment
Invest in green technology
The Indian government actively promotes investments in renewable energy and sustainable technologies by providing tax incentives.
For example, under Section 80C of the Income Tax Act, you can claim deductions up to ₹1.5 lakh for investments in specified instruments, and this includes certain green technologies.
By installing solar panels or solar water heaters at home, taxpayers can contribute to a greener environment while also reducing their taxable income.
Eco deductions
Claim deductions for eco-friendly products
Buying green products, like electric cars, comes with tax perks under the Income Tax Act.
Specifically, Section 80EEB lets you deduct up to ₹1.5 lakh for interest on loans you take out to buy an EV.
It's a win-win: the government encourages people to go green and reduce their reliance on fossil fuels.
Green giving
Donations towards environmental causes
Donations made for environmental conservation and protection are eligible for deduction under Section 80G of the Income Tax Act.
Contributions made to certain funds and charitable institutions working for ecological balance qualify for a 100% or 50% deduction, with no limit on the qualifying amount.
This not only motivates taxpayers to contribute to green causes, but also plays a crucial role in fostering a healthier planet.
Learning green
Expenses on environmental education
Money spent on green education might not get you a tax break, but investing in eco-friendly knowledge helps the planet and your wallet in the long run.
While you can't claim a direct deduction for any old class, specific courses or certifications might sneak in under other sections if they directly lead to a job or a side hustle that significantly contributes toward sustainability efforts.
Travel smart
Utilize public transport incentives
Government schemes incentivize you to use public transport to cut pollution.
Though direct tax benefits are minimal, indirect savings from reduced vehicle wear and tear increase disposable income.
This frees up cash for investments in Public Provident Fund or National Pension System, indirectly rewarding a zero-waste lifestyle by cutting carbon emissions through intelligent travel decisions.