Income Tax Deductions under Section 80C,80D are the most common options for the taxpayers to reduce the tax burden. There are many income tax deductions rules as per income tax act which taxpayers should know to increase their tax savings while filing income tax return.
Important Income Tax Deductions for AY 2017-18: 80C Deductions,80D Deductions.
Income Tax Deductions under Section 80C:
What is Section 80C Deduction?
Section 80C is the most common income tax deduction section or tax saving section that allows the deductions of Rs.1,50,000.
Section 80C Deduction includes various income tax saving options/instruments which taxpayer can choose to increase their investment plans.
These are the best tax saving schemes available under Section 80C:
Investment in ELSS: ELSS (Equity Linked Savings Scheme) are the tax savings scheme that invest primarily in equities. The lock-in-period of ELSS is 3 years. You can invest through a SIP (Systematic Investment Plan).
Investment in PPF (Public Provident Fund) under Section 80C Deductions: The lock-in-period of PPF is 15 years.
Investment in EPF (Employee Provident Fund) under Section 80C Deductions.
Investment in NPS (National Pension System) under Section 80C Deductions.
Investment in NSC (National Savings Certificates) under Section 80C Deductions: The lock-in-period of NSC is 6 years.
Investment in ULIP (Unity Linked Insurance Plans).
Investment in Sukanya Samriddhi Yojana.
Investment in Life Insurance.
Investment in Senior Citizen Saving Scheme.
Section 80C Deduction is applicable to Individual and HUF and allows deduction up to Rs.1.50 lakh.
Income Tax Deductions under Section 80D:
What is Section 80D Deduction?
Section 80D Deduction is applicable only for individuals and HUF. Section 80D Deduction provides deduction for medical insurance premium and health check-up.
The deduction amount is different for senior citizens and non-senior citizens under section 80D.
These are the types of deductions that you can claim under section 80D:
Section 80D Deduction on Health Insurance premium paid for your parents: You can get a tax deduction of a maximum of INR 25,000 under Section 80D.
Section 80D Deduction on Health Insurance premium paid for you and your family: You can get a tax deduction of a maximum of INR 25,000 under Section 80D.
Section 80D Deduction on health check-up: You can get a tax deduction of a maximum of INR 5,000 under Section 80D.
Section 80D Deduction on medical expenses of senior citizens: You can get a tax deduction of a maximum of INR 30,000 under Section 80D.