Taxpayers are always looking for some way to save tax. Under the Income Tax Act, taxpayers have been given many facilities to save tax. But many of these deductions are not known to taxpayers. You can claim a tax deduction on money spent on tuition fees, medical expenses, etc. Not only this, but you also get the benefit of tax rebate on investment. Let us know what major deductions you get in income tax.
Under Section 80C of the Income Tax Act, taxpayers are given tax exemption on investments. Tax rebate can be taken on investments up to Rs 1,50,000 under Section 80C. There is no fixed minimum limit. Through this, you can claim tax exemption on different types of investments, such as mutual funds, term insurance plans, public provident funds (PPF), National Pension Scheme (NPS), Employees Provident Fund (EPF), National Savings Certificate (NSC) ), Sukanya Samriddhi Yojana, etc.
Section 80 CCD (1B)
To encourage people to save and invest, Section 80CD provides relief in some pension schemes. Under this section, taxpayers get a maximum deduction of Rs 50,000 in the National Pension Scheme. That is, a maximum deduction of two lakh rupees can be found in Section 80C and Section 80 CCD (1B).
Under this, the tax paid on the premium paid for a health insurance policy can be claimed. Taxpayers can claim a deduction of Rs 25,000 for the health insurance premium for themselves, spouse, parents, and dependent children. On the other hand, if the parents are over 60 years of age, the claim limit is Rs 50,000.
With the help of Section 80DD, a taxpayer can claim tax exemption on the expenses incurred in his treatment if he is a disabled dependent (spouse, children, parents, etc.). There is a provision of deduction of up to Rs 75,000 for their treatment and upbringing, while there is a provision of deduction of up to Rs 1,25,000 for severe disability.
Section 80 DDB
In Section 80DDB, taxpayers get a deduction of up to Rs 40,000 for the treatment of critical illnesses. At the same time, this figure is even higher for senior citizens. The deduction limit for the treatment of senior citizens is one lakh rupees.
In section 80E, taxpayers get the benefit of deduction on interest paid on loans for higher education. In this, taxpayers also get the benefit of deduction in interest paid on loans for higher education abroad.
Taxpayers who do not receive house rent allowance get the benefit of this deduction on the rent paid. Under this, there is a provision of a deduction of a maximum of Rs 60,000.