Whenever it comes to saving tax, people think of sections 80C and 80D because most of the people are aware of these. Under section 80C, you can claim a deduction of Rs 1.5 lakh from your total income, while section 80D is for deduction on medical expenses.
But apart from these, there are many such sections in the Income Tax Act, through which you can save tax on your income. Let’s know about it from CA Rahul Kumar Agarwal.
First know section 80C
First of all, we will talk about section 80C. In this matter, Rahul says that most of the people think that income up to Rs 5 lakh is tax free, which is not correct. In fact, income up to 2.5 lakhs comes under the ambit of tax exemption. After this, for the next Rs 2.5 lakh, a rebate of up to Rs 12,500 is available under section 87A. In this way, the benefit of tax exemption is available on the total salary of 5 lakhs. Apart from this, under section 80C, tax exemption can be availed on investments up to Rs 1.50 lakh in schemes like term insurance, 5-year FD, senior citizen savings schemes and ELSS mutual funds.
Section 80CCD
If you invest money in the National Pension Scheme, you can claim tax exemption under section 80CCD. You get tax exemption on Tier 1 account in NPS. Under NPS, under Section 80CCD (1B) of the Income Tax Act, tax exemption can be availed on investments up to Rs 50,000. NPS can also help you in extra tax savings if you have met the limit of up to Rs 1.5 lakh under section 80C.
Section 80D
You can save tax on your income by taking health insurance premium for the health of yourself, family and dependent parents. If your age is less than 60 years, then you can get a rebate of up to Rs 25,000 by paying premium for yourself, life partner and children under this section. Those whose age is more than 60 years, they can claim deduction of up to 50 thousand rupees under section 80D. On the other hand, if both the taxpayer and his parents are above 60 years of age, then a deduction of up to Rs 1 lakh can be claimed.
Section 80DDB
If a dependent person in your family is suffering from a serious illness, then the amount spent on his illness is also tax exempt. All diseases like cancer, hemophilia, thalassemia and AIDS have been included in this list. Under section 80DDB, you can take this deduction on the expenses incurred for the treatment of parents, spouse, children or dependent siblings. But you must have a medical certificate. According to age and other conditions, this deduction can be from 40 thousand to 1 lakh.
Section 80EE
If your home loan is less than Rs 35 lakh and the value of your property does not exceed Rs 50 lakh, then under section 80EE you can claim an additional deduction of Rs 50,000 (Section 24) on home loan EMI interest. But the condition is that no other property should be registered in his name at the time of loan approval.
Section 80EEA
If you have taken a home loan, you can claim an additional tax deduction of Rs 1.5 lakh on home loan interest under section 80EEA. But the condition is that the stamp value of the house should not exceed Rs 45 lakh. Apart from this, the home loan must have been taken between April 1, 2019 and March 31, 2022. If you have bought a house in metro cities, then the carpet area for it should not be more than 60 square meters, for other cities this limit may be different.
Section 80E
If you have taken a loan for higher education of yourself, life partner or child, then you can claim tax exemption on the interest earned on this loan. But the condition is that it is taken from a recognized institution or bank. This exemption can be available for the immediately coming assessment year and up to 7 assessment years thereafter.
Section 80GG
Salaried people who live in a rented house can reduce their tax burden through house rent allowance. 60,000 annually under section 80GG. (Rs. 5,000 per month) is the maximum exemption allowed.
Section 80TTB
Under Section 80TTB, tax exemption can be taken on earning a maximum of Rs 50,000 annually on the interest earned from deposits. This section is available for senior citizens from 1st April 2018. However, under Section 80TTA, the deduction of up to Rs 10,000 on the interest earned from savings account is not available to senior citizens.
