Tax Deduction: All taxpayers should pay tax on time. In such a situation, taxpayers can also avail tax benefits. Let us tell you that you can easily get the benefit of tax exemption through some sections of the Income Tax Act. In this article we tell you how much tax deduction you can make under which section.
Income Tax 2024: Every taxpayer wants to save maximum tax. Whenever it comes to tax exemption or deduction, almost all taxpayers avail it under Section 80C and 80D of the Income Tax Act.
Let us tell you that under 80C, tax exemption up to Rs 1.50 lakh is available and under 80D, tax exemption is given on medical expenses.
Apart from these sections, taxpayers can avail tax exemption through many other sections. Let us know how much tax benefit is available on which investment.
Provident Fund
The amount invested by the investor in Employees Provident Fund (EPFO) is tax free. Even the interest on the amount invested in Provident Fund is not taxed. Employees contributing to PPF are eligible for tax exemption under Section 80C of the Income Tax Act, 1961. Apart from these, employers can also avail tax benefits under 80C.
Life insurance
At present, life insurance plays an important role in securing yourself and your entire family. There is no tax on the premium paid for life insurance. To avail the benefit of tax exemption on insurance premium, tax deduction can be claimed under Section 80C.
If the premium for medical insurance is Rs 25,000, there is no tax on it under section 80D. There is no tax to be paid on checkup expenses up to Rs 5,000.
Equity Linked Saving Scheme
In Equity Linked Saving Scheme, the investor also gets the option of tax deduction. Let us tell you that Equity Linked Saving Scheme is included in Mutual Fund. In this, the investor can claim tax deduction up to Rs 1.50 lakh. The taxpayer gets tax exemption under 80C.
In this scheme, there is no tax on long term capital gains up to Rs 1 lakh, but 10 percent tax has to be paid on more than Rs 1 lakh.
Home loan
If you have also taken a home loan to build your house, then you can avail tax benefits. In this, loan holders can claim tax deduction under 80EE. Taxpayers can claim deduction up to Rs 50,000 in a financial year.
Infrastructure bonds
Many investors invest in Infrastructure Bonds. In this, taxpayers can avail tax benefits under Section 80C of the Income Tax Act. Investors get tax exemption only on bonds worth Rs 2,000 or more.
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