Most people are aware of tax deduction of Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. The right tax-saving investments we help customer most taxpayers, including salaries individuals and professionals, to save tax.
Section 80CCD: National Pension Scheme
Beyond the contribution of Rs 1.5 lakh under Section 80C, the person can invest an additional Rs 50,000 in NPS which can be claimed as tax deduction under Section 80CCD. This gives the customer option of claiming a tax deduction of up to Rs 2 lakh every year by investing in NPS.
Section 80D: Payment of health insurance premium
Under Section 80D of the Income Tax Act, the person can claim a tax deduction for premiums paid by the family members and your health insurance. This section allows the person to claim a maximum deduction of Rs 25,000 per year on premiums paid. The person is eligible for an additional deduction of Rs 25,000 if the person is paying medical insurance premiums for your parents, taking your total deduction to Rs 50,000.
Section 80E: Repayment of an education loan
The amount paid as interest for an education loan for any student to whom the customer is a legal guardian can be claimed as a tax deduction under this section. There is no limit to claim the deduction for interest paid in a financial year. Customer can get the deduction from the year you start repaying the education loan.
Section 24: Interest payment of a home loan
Taxpayers can avail the amount paid as the interest component of a home loan as a tax deduction under Section 24 of the Income Tax Act. The maximum limit in this section is Rs 2 lakh which can get as interest payment of a home loan for a self-occupied property.
Section 80EE: Interest payment of the home loan for first-time buyers
If the customer does not own any other house property, then they can claim a deduction of up to Rs 50,000 under Section 80EE. The
above amount is the tax benefit of Rs 2 lakh for repayment of home loan interest under Section 24.
The rules to avail of this deduction are that the value of the house should be below Rs 50 lakh, and also the loan amount should be Rs 35 lakh or less.
Section 80EEA: Interest payment of the home loan for first-time buyers
If the customer not owned any other house property (first-time homebuyer), then you can claim a deduction of up to Rs 1,50,000 under Section 80EEA. The above amount is the tax benefit of Rs 2 lakh for repayment of home loan interest under Section 24.
The conditions to avail of this deduction include that the stamp duty value of the house should be less than Rs 45 lakh.
Section 80EEB: Interest paid on loan taken for the purchase of an electric vehicle
If the person has taken a loan for the purchase of the electric vehicle, then they can claim a deduction of up to Rs 1,50,000 under Section 80EEB. To avail of this deduction, the condition is that the loan should be sanctioned between April 1, 2019, and March 31, 2023.
Section 80G: Donations to charitable institutions
Donations perform to government-approved charitable institutions can be avail as a deduction under this section. The donation can be for the renovation of a place of worship like temples, mosques, and churches, also this is approved by the central government.
To avail of the tax deduction through this section, the person should donate by cheque, as starting from FY17-18 cash donation above Rs 2,000 do not qualify as deductions. Funds approved by the government include the National Defence Fund, Prime Minister’s National Relief Fund, Clean Ganga Fund, National Children Fund, etc.
Section 80GG: Rent paid for accommodation
This deduction can be claimed if you do not get a house rent allowance as part of a person salary, or if you are a self-employed person. To get this deduction, the person needs to submit Form 10BA. Then they can claim a deduction of up to Rs 60,000 under this section.
Section 80TTA: Interest from Saving Bank Account
The deduction can be claimed up to Rs 10,000 concerning interest income received from a saving bank account with a banking company, a post office or a cooperative society linked in the business of banking.