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If it’s about paying taxes, many folks only think of section 80C however the Indian Income Tax Law provides a variety of not-considered tax-deductible deductions that could help you save more. A good tax strategy doesn’t only involve making investments, it’s also about being aware of all benefits that are offered by various provisions that make up tax law, including the Income Tax Act.
If you’re trying to prepare your taxes in a smart way and reduce the amount you owe, the following are the most important deductions for taxes that every Indian must be aware of.
In section 80C the taxpayer can take as much as Rs1.5 lakh of deductions per calendar year.
You can make investments in:
This is at the heart of any tax strategy. method.
If you’ve already used the limit of your 80C, you are eligible to claim an additional amount of Rs50,000 deduction in accordance with section 80CCD(1B) for contributions to the National Pension Scheme (NPS).
This is a great method to prepare for retirement and reduce taxes.
In Section 80E you can take a deduction to pay for the interest on education loans which you’ve paid either yourself, your spouse or child.
There’s no threshold to the amount that can be claimed and the only restriction is the loans originate from a reputable financial institution.
There is a way to deduct medical expenses related to certain ailments (like cancer, chronic renal failure etc.) under Section 80DDB.
It is among the most under-appreciated tax-deductible deductions for tax purposes in India.
If you’re caring for a person disabled, Section 80DD permits you to make a claim for:
The deduction is for medical treatments as well as rehabilitation, training and.
Donations to approved charitable organisations are eligible for deduction as per section 80G.
Depending upon the kind of charitable organization, you are able to claim 50 or 100 percent of the amount you donate.
Giving back can prove tax-deductible in the long run, but be sure to keep the correct donation receipts.
Homeowners are entitled to deductions of up 2 lakh on the interest on their home loans pursuant to section 24(b).
This is applicable to non-occupied homes and is able to be paired with Section 80C to maximize savings.
If you don’t get the HRA (House Rent Allowance) from your employer, you may nevertheless claim a deduction under the Section 80GG to pay the rent you pay.
The deduction will be the smallest of the following:
Do not forget to take these tiny but important deductions from interest earnings.
In the case of those with an income from abroad or who have made tax payments abroad, Section 90 and Section 90 provide relief for foreign taxes. This can help reduce double taxation as part of Double Taxation Avoidance agreements (DTAA) among India and the other countries.
An effective Tax planning is utilizing the full range of taxes that are not limited to the most popular deductions. If you explore sections such as 80E, 80DDB and 80DD and more and reduce your tax-deductible earnings.
If you’re looking for professional assistance for tax planning and filing take a look at Taxoo.in an established platform to assist with tax preparation for compliance, tax filing, as well as financial advice. Be smart and save money, while staying compliant!
