Income tax deduction under section 80. Income tax deduction under section 80C. Section 80C of the
Income-tax Act, including Section 80CCC and Section 80CD, provides a special
combination of activities that taxpayers can use to reduce their taxable income. By investing your income in
this activity, you can claim a tax deduction of up to Rs. 50,000 / -
Tax Saving FDs: By investing in these you will get the dual benefit of tax exemption and a higher rate of return. Tax saving FD is a perfect investment option for those who want to invest their money in low-risk instruments.
P.P.F (Public Provident Funds) is a unique option for many taxpayers. Since this is a government established savings scheme with a maximum duration of 15 years, your money is not only safe but also guaranteed return.
• ELSS Funds: ELSS or Equity Linked Savings Schemes is another popular means of saving on income tax deduction under section0. By selecting ELSS, the type of mutual fund you are investing in invests 0% of your money in equity shares. The lock-in period of the ELSS fund is years; However, these are great not only from the point of view of paying taxes but also from the point of view of returns.
• NSC -These schemes have a term of 5 years and a fixed rate of interest. The interest you earn on your NSC investment falls within the discount limit of Rs 1.5 lakh. If you still have room to claim deductions, you can use it to fill in the blanks and save your income tax.
Life Insurance Premium: If you have a life insurance policy, for yourself, your spouse or your children, for which you pay a regular premium, you can use this amount for a tax deduction
Home Payment: Premiums paid to pay the principal of your home loan are eligible for a tax deduction.
Payment of tuition fees: If you pay a certain amount of tuition fees for yourself, your spouse or children, you can claim that amount of tax deduction
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• EPF (Employees Provident Fund): Under the Employees Provident Fund Act, about 12% of an employee's salary is contributed to the Employees Provident Fund investment. The employee's portion of this contribution is eligible for a tax deduction.
Senior Citizen Savings Scheme: If you invest in SCSS, as an investment or you plan your retirement, this amount can be claimed as a deduction under section 80.
Section 80 CCC of the Income Tax Act proposes a reduction in contributions to the pension fund - if you invest in a pension plan offered by public or private sector insurers, the premium you pay for this fund can be used to claim deductions under section C0 CCC. It falls within the maximum money limit. 1.5 lakh
Section 80 CCD of the Income-tax Act proposes a waiver of contributions to the pension scheme by the central government - under this scheme, the contribution of both the employer and the individual is eligible for tax exemption up to 10% of the individual's salary.
The Income Tax Department offers discounts on premiums paid for 80D medical insurance - you get Rs. 25,000 in any financial year. These insurance policies can be for you, your spouse or your children. If one of the insured members is 60 years of age or above, the deductible tax is Rs. 30,000. Additional tax deduction on medical insurance for parents has been approved up to Rs. 25,000. In the case, the parents are 60 years of age or older; You can claim up to Rs 30,000. The maximum allowable exemption under section 80D is Rs. 60,000.
Section 80 D contains subsections that can be used to claim a fight if applicable to you. The subdivisions are as follows
Section 80DD for a tax deduction in two situations - If you pay for the treatment of the disabled, you will be deducted Rs. 10,000 per month. In case of severe disability Rs 1.5 lakh can be claimed and Rs. 75,000 in other disability cases.
Section 80GG of the Income Tax Act exempts the payment of house rent. If the HRA is not part of your salary, you can claim a discount on the house rent paid. However, you, your spouse or your children should not own residential housing in the workplace. The person claiming the deduction should be the tenant and the rent payer. The deduction under this section is Rs. 60,000.
