None of us like to pay taxes on their income earned for years, but we should pay it because income tax is an important way of getting revenue from the government. The government uses this revenue only to create nation. As India is a developed country and some Indians earn so much income that they have the income tax liability, so if you also get tax liability, then you should pay taxes honestly. Save income tax
However there are some ways in which you can legally reduce your taxable income. The government allows every taxpayer to do some tax savings or deductions that you can use to reduce your taxable income. Through this news we will tell you about some of the ways which can reduce your taxable income. Know which of these items you can take advantage of tax deductions.
By investing in these places under section 80C, you can save tax up to Rs 1,50,000 for the financial year 2016-17 …
- By investing in PPF
- Employee Participation in PF Contribution
- National Savings Certificates
- Life insurance premium payment
- Children’s tuition fees
- Principal loan of home loan
- Investing in Sukanya Samridhi Yojna
- Payment made for the purchase of Deferred Annuity
- Five year deposit scheme
- Senior Citizen Savings Scheme
- Subscription / notified deposit scheme for notified securities
- Contribution to the notified pension fund established by mutual fund or UTI
- Subscription to National Housing Bank’s Home Loan Account Scheme
- Subscription to the company’s deposit scheme engaged in public sector or housing Finance
- Contribution to LIC’s Notified Annuity Plan
- Purchase of equity shares and debenture which are valid for income tax saving
- Nabard’s Notify Bond Subscription
- Under 80ccd (1B) you can claim a deduction of 50,000 rupees for additional contributions to the NPS.
- You can also claim deduction up to a maximum of Rs. 10,000 on the interest received on the Savings Account under 80TTA (1).
- You can claim for tax deduction under the payment of rent under 80GG (when the HRA has not been received by the employer). Reduction of the minimum rent from the salaries by 10 percent, 5000 rupees per month or 25 percent of the total income. You can claim for whatever is less of this.
- Under 80E, you can claim interest for education loan as well.
- Home loan instance for First Time Home Buyer under 80EE. This limit is up to Rs 50,000.
Under 80D, tax deduction up to Rs 25,000 on own, wife or children’s medical insurance is available. At the same time, this limit is 30,000 rupees for parents of more than 60 years of age.
- You can also claim tax deduction for medical expenses of 80DD disability dependent or payment for Handicapped Dependant in the specified scheme. It is different on the basis of disability. If disability is 40 to 80 percent, then this limit is Rs 75,000, but in case of disability more than 80 percent, this limit is 1,25,000.
- Medical expenditure expenditure on self or dependent relative is also deductible for the diseases specified in rule 11 DD under 80DDB. At the age of 60, the limit is Rs. 40,000, 60 years for the age of 60 years and the age limit is 80 thousand rupees for this limit.