need information about the tax
Here are some ways to save taxes.
Deductions under Section 80C, Section 80CCC and Section 80CCD
Citizens of India can save tax under these 3 sections. If you have invested your money in the instruments mentioned in Section 80C, Section 80CCC and Section 80CCD, then you can claim certain deductions. Some of the popular instruments which people invest in are PPF, Pension Plans, Life Insurance Policy, NSC (National Savings Certificate), 5 Year Tax Saving Fixed Deposit, etc. The maximum deduction that citizens can claim under one section or all 3 sections combined is Rs.1,50,000. People who invest in National Pension Scheme can claim an additional deduction of Rs.50,000 under Section 80CCD.
Taxpayers can save tax on the amount they have spent on medical treatments. If people provide their medical bills, they can save taxes. Also, some employers provide Medical Allowance to employees. The maximum amount people can claim using medical bills in a year is Rs. 15,000. The Income Tax Act allows deductions under Section 80D, Section 80DD and Section 80DDB on income that has been spent by the taxpayers for insuring their own health or their relative’s health. The deduction amount may vary for each section and depends on the type of insurance policy the taxpayer has purchased.
Most people are advised to save tax by taking a Home Loan because the deductions can be claimed under 3 sections, which can result in huge savings. If people take a Home Loan, then they are allowed under Section 80C of the Income Tax Act to claim deductions on the repayment of the principal loan amount. Section 24 allows people to claim deduction on the interest they have paid on their Home Loan. The maximum deduction of Rs. 2,00,000 is allowed for the interest repaid.
People can save tax by opting for an Education Loan for higher education for themselves or their children or spouse, etc. Section 80E of the Income Tax Act allows people to claim deduction on the amount they have spent for paying the loan interest. There is no maximum limit on the amount of deductions they can claim. Section 80E only allows individual taxpayers to claim deductions.
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