There is a number of Income Tax Deduction available under Section 80 which taxpayers can consider to save their taxes and plan their finances better for future. Taxpayers can claim a maximum deduction of Rs. 1.5 lakh under this section to reduce their taxable income in any financial year. Any individual or Hindu undivided family is eligible for this deduction and save their taxes.
List of Income Tax Deductions available to save taxes:
Section 80C:
Section 80C is the most common and popular income tax deduction option among taxpayers to save taxes. There are many investment options which come under section 80C and taxpayers can claim tax deduction using this section. Any individual or HUF can claim a maximum deduction of Rs. 1.5 lakh under this section to save taxes.
Most widely used investment options under Section 80C are:
-ELSS
-Insurance
-EPF/PPF/VPF
-NSC
-NPS
-SCSS
Section 80D:
Section 80D is the tax deduction section which taxpayers can consider if they buy any medical insurance for self, spouse or parents. Any individual or HUF can claim the Income tax deduction under Section 80D. A maximum amount of Rs. 25,000 can be claimed under this section if the age is below 60 years old and Rs. 30,000 if the age is above 60 years old.
Section 80CCC:
This income tax deduction available if you have made investments in annuity plans of any life Insurance companies. Any individual can claim this tax deduction if the conditions of the section are fulfilled.
Section 80CCD:
This deduction is allowed if an individual made investments in a pension plan and can claim a maximum deduction of Rs. 1.5 lakh or 10% of salary (in case of taxpayer is an employee).
Section 80EE:
If a taxpayer is first time home buyers then they are eligible for this deduction on home loan interest payment. To claim this deduction, there are some conditions which must be fulfilled:
-The value of the property should not be greater than 50 lakh.
-The loan amount should not be greater than 30 lakh and must be sanctioned between 201 6-17.
Section 80G:
This deduction is available if you have made a contribution towards the charity institutions or any social causes. This deduction is only eligible if the donation is done by cheque or draft otherwise donation above Rs. 2000 in cash is not eligible for this deduction.
This is very important to get the personalized tax saving options according to your requirements. Here at Trutax we help you to understand the best tax saving options available which you can choose for your better financial future. We suggest our clients to invest early and wisely to get maximum returns on your hard earned money.
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