There are several provisions in taxation laws in India to allow taxpayers to save on taxes. Here we discuss some significant deductions under the Income Tax Act, 1961.
Make the right use of Rs.1.5 lakhs limit allowed under Section 80C
Investments to the extent of Rs. In schemes like Tax Saver FD, Life Insurance Premium, Senior Citizen Savings Scheme, and Sukanya Samrudhi Yojana, 1.5 lakhs can enable you for an appropriate tax deduction.
National Pension System
This deduction given by section 80CCD allows up to 50,000 rupees for contribution to the National Pension Scheme.
Health Insurance Premiums
By paying for health insurance premium, you may be eligible for a deduction of up to Rs 25,000 under Section 80D, it is allowed at the top of all the deductions listed above.
Deduction on your rent
If you are receiving HRA, it is possible to claim a tax deduction for your home rent. Although there is no upper limit for this, there are still some rules that cap on the maximum deduction.
Deduction on the home loan interest
When you have a home loan, the interest you pay for a home loan is taxable under section 24 of the Income Tax Act. The maximum limit you can claim in this regard is Rs 2 million
Money in your savings account
The easiest way to save money on income tax is to keep some money in your savings account.
To the extent of Rs. 10,000 per year, interest on savings accounts is tax-free under Section 80TTA.
Give for charity
Donations made against charity enable you to tax deduction. Although there is no upper limit for this, there are different rules that restrict the amount of deduction on contribution towards charity.