Table of Contents
How can we reduce income tax in india
You can Reduce your Tax Liability by save money/investment for your future
1. Deductions Upto 80C
We can use up to deduction under chapter VI Rs 1.5 lakh ceiling u/s 80C. Income Tax Deductions or investments are all this subjected to a celling Limit of INR 1.5 lakh can be saved from tax liability.
· Tax-Saver FDs up to INR 1.5 lakh under 5-year tax-saver FDs
· Investment in PPF (Public Provident Fund) for a period of 15 years available
· ELSS Funds
· Investment in NSC (National Saving Certificate)
· Payment of Life Insurance Premiums
· Investment in National Pension System (NPS)
· Home Loan Repayment
· Payment of tuition fees up to INR 1.5 lakh p.a
· Contribution to Employees Provident Fund (EPF)
· Payment Senior Citizens Savings Scheme up to INR 1.5 lakh for a period of 5 years
· Payment towards Sukanya Samriddhi Yojana up to INR 1.5 lakh p.a
2. Deductions Other than 80C
· Deduction to National Pension System under Section 80CCD (1B) is up to INR 50k.
· Get the Deduction on a Rent deduction under Section 80GG up to INR 60k p.a.
· Payment of Health Insurance Premiums upto INR 25k for parents upto INR 75k is deductible.
· Get the Deduction on an Interest on a Home Loan up to INR 2,00,000/-p.a.
· Keep some Money in the Savings Account interest up to INR 10k per year under Section 80TTA. It has a limit of INR 50,000 for senior citizens for both FD
· Contribute to Charity/donations to NGOs, limit u/s section 80G is 50% of a donated amount and up to 10% of adjusted total income.
3. Few other Tax Saving Options in India
kept in mind while looking for tax saving methods Link as:-
- U/s 80E, Interest component of education loans upto first 8 years of loan repayment.
- Expenditure incurred for medical treatment is exempted u/s 80DDB. Limit up to ?40,000 for treatment of specific diseases & for senior & super senior get up to ?1 Lakh.
- Depending Family member permanent disability can claim a tax exemption u/s 80DD.
- Person disabled than can claim tax waivers of the accord u/s 80U.
Conclusion
All of these measures will substantially reduce total taxable income for a given financial year. Learning more about the various government-mandated provisions is beneficial. To get additional funds, make sure to submit your income tax return form as well as the Form 16 provided by your employer.
Popular blog:
