Tax Exemptions as per old tax regime for the F.Y.2023-24 and A.Y.2024-25 | When it comes to tax
planning, deductions under Section 80C, 80CCC, 80CCD, and 80D are some of the most popular
options for tax savings. These deductions allow taxpayers to reduce their tax base by investing in
various financial instruments and insurance policies.
You may also Download - Automated Income Tax Arrears Relief Calculator U/s 89(1) with form 10E from the F.Y.2000-01 to F.Y.2023-24 (Updated Version)
However, with so many options available, choosing the right one to meet your financial goals and tax savings can be confusing.
Deductions
under Section 80C:
Section 80C of the Income Tax Act, of 1961 provides tax benefits on investments made in various financial instruments and expenditures made by an individual during the financial year. The upper limit of deduction under Section 80C is Rs 1.5 lakh.
Qualifying
investments and expenditures under Section 80C:
Certain investments and expenditures can be found under Section 80C, such as:
Life insurance premiums: Premiums paid for life insurance policies for yourself, your spouse, or your children are eligible for Section 80C deduction.
Public Provident Fund (PPF): PPF is a popular investment option that allows people to save money for the long term and earn tax-free income.
Equity Linked Savings Scheme (ELSS): An ELSS is a type of mutual fund that invests in stocks and offers tax benefits to investors.
National Pension System (NPS): NPS is a government-sponsored retirement savings plan that provides tax benefits to investors.
Sukanya Samriddhi Yojana (SSY): SSY is a savings scheme for girls which provides tax benefits to the investor. Investments made under SSY are eligible for deduction under Section 80C.
Senior Savings Scheme (SCSS): SCSS is a savings plan for seniors that offer tax benefits to investors. Investments made in SCSS are eligible for deduction under Section 80C.
Tax-saving fixed deposits (FD): Banks offer tax-saving fixed deposits with a holding period of 5 years and tax benefits for investors. Tax-saving investments made by FD are eligible for deduction under section 80C.
House Building Loan Principal Amount: H.B. Loan Interest is eligible for deduction under Section 80C.
School fees for the education of children: School fees paid for the education of children are deductible under Section 80C.
Other eligible expenses: Certain expenses, such as stamp duty and registration fee paid on the purchase of property, expenditure incurred for repairs or improvements, and investment in postal savings schemes are also eligible for deduction under section 80C.
Maximize 80C and 80D deductions
The Maximum U/s 80C deductions are one of the most popular plans for their savings and expenses. Here are some tips to consider:
Invest in tax-saving tools at the beginning of the tax year to maximize returns and reduce the one-time investment burden near the end of the tax year. Invest in a mix of instruments to diversify your portfolio and reduce risk.
Pay off the principal of your home loan before the end of the tax year for maximum deductions.
If you have children, consider investing in their education and claiming tuition paid under section 80C.
To
maximize your 80D deduction, consider the following:
In the health insurance for you as well as your family members. Having adequate health insurance is essential to deal with any unexpected medical expenses.
If you are older, consider purchasing a policy that offers more money and benefits.
Pay your health insurance premiums on time to avoid gaps in coverage and maximize your deductible. Summary of Section 80 of the Waiver
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