To save income tax, most people are aware of a few sections of the Income Tax Act, among which sections 80C and 80D are common. Let us tell you in detail about other streams.
Income Tax Planning: To save income tax, the Income Tax Department gives many types of exemptions to the taxpayers, which can be availed to avail tax exemption. To save income tax, most people know about Section 80C and 80D of the Income Tax Act. But, apart from this, there are many other sections through which income tax exemption can be availed.
Since the interim budget is about to be presented and the government can make important announcements related to income tax in it. Let us tell you about various sections related to income tax…
Section 80C
First of all, let’s talk about Section 80C of the Income Tax Act, through which income tax exemption can be claimed by investing in various schemes. Under Section 80 C, you can claim a deduction of Rs 1.5 lakh from your total income.
Section 80D
Section 80D of the Income Tax Act is for deduction on medical expenses. Under this section, the taxpayer can save tax on the medical insurance premium paid for the health of himself, his family and dependent parents. The limit of Section 80 D deduction for premium paid for self/family is Rs 25,000. For premium paid on health insurance for elderly parents, you can claim a deduction of up to Rs 50,000. At the same time, under section 80DD, you can get tax exemption under the expenses incurred on the treatment of a disabled person.
Section 80E
Section 80E provides the facility of deduction in interest on education loan. The important conditions are that the loan should be taken by an individual or his/her spouse or children from a bank or financial institution for higher education (in India or abroad).
Section 80EE
Section 80 EE of the Income Tax Act allows the taxpayer to claim an additional deduction of Rs 50,000 (Section 24) on the interest on home loan EMI. Provided that the loan should not exceed Rs 35 lakh.
Section 80G
Under Section 80G of Income Tax, any individual, HUF or company can avail tax exemption on donations made to any fund or charitable institution. However, the necessary condition for this is that the organization to which you donate must be registered with the government. The special thing is that in some cases tax exemption of up to 50 percent can be availed. Donation can be made in cheque/draft or cash and you must have proof of the same in the form of a certificate.
Section 80TTA
Section 80TTA of the Income Tax Act, 1961 provides a deduction of up to Rs 10,000 on income earned from savings account interest. This exemption is available to individuals and Hindu Undivided Families.
Section 80DDB
Under this, the taxpayer gets income tax deduction on the amount spent on the treatment of serious and prolonged illness of any of his dependent members.
