Deductions for EPF, ELSS, NSC, NPS, APY, etc., all fall under the umbrella of Section 80C which is the most widely used avenue for saving tax, levied on incomes along with Section 80CCC and 80CCD (1) respectively. Any taxpayer or HUF, i.e., a member of the Hindu Undivided Family unit is eligible to claim income tax exemptions amounting up to 2 Lakh INR, upon investing via specific tax saving modes.
For tax exemptions covering your spending on medical insurance and related costs, a deduction can be claimed under Section 80D. On making payments towards health insurance premiums for self, family, and dependent parents, you could demand additional deductions of 25,000 and 50,000 INR (in case of senior citizens), respectively.
Section 80C and Section 24 deals with deductions as well as principal repayment as well as interests on housing loans. Owners may claim deduction amounting up to 2 lakh INR for interests under Section 24 and up to Rs 1.5 lakh under Section 80C. Section 80EE enables owners to claim an additional amount of 50,000 INR towards the interest element of the house loan.
House Rent Allowance or HRA can be claimed by taxpaying individuals residing in rental accommodation and may either be completely or partially exempt. The Leave Travel Allowance or LTA can be claimed twice in a 4-year period covers spending incurred during domestic travel only; provided the journey was made either by rail, air, or via public transportation. No other expenditures apart from the ticketing charges are considered.
Section 80E offers a deduction for loans towards higher education. There are separate rules in place for such loans and are usually stipulated by banks or other lending institutions. Sections 80G and 80TTA deal with deductions that can be claimed when making donations towards certain organisations and are eligible for 50 or 100 per cent exemption depending on the recipient institution. Deductions amounting up to 10,000 INR is available to the HUF on earning through interest generated by their savings account.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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