Section 80C
You get exemption under section 80C of the Income Tax Act on many options related to social security schemes or investments. This includes EPF, Investment in PPF, Sukanya Samriddhi Yojana, NSC, Tax Saving Mutual Fund (ELSS) and Tax Saving FD etc.
You can avail income tax exemption under section 80C on the savings made through these investment options. Similarly, you are entitled to income tax exemption on investments up to a total of Rs 1.5 lakh, including premiums for life insurance, etc., combined with several other options.
Not only this, you can claim exemption from income tax under section 80C only on tuition fees for the education of two children, part of the principal amount included in the home loan installment, stamp duty and registration charges for the purchase of the house, etc.
Section 80CCD(2D)
You also get the benefit of separate income tax exemption from section 80C on investment of up to 10% of basic salary under section 80CCD(2D) in the National Pension System (NPS). Interestingly, this exemption on investment can be available to taxpayers falling in all tax slabs. So if you want to secure your old age then you can invest in NPS. NPS has given excellent returns in the last 12 years.
section 24b
If you have taken a home loan from the bank to build a house, then you get income tax relief under section 24B of the Income Tax Act on the total interest up to Rs 2 lakh in the monthly installment to be paid for it. Similarly, you also get income tax exemption on loans up to Rs 30,000 for home repairs etc. Very few people know about the discount on the loan taken from the bank for repairs.
Section 80D
You can claim income tax exemption under this section on the amount of premium paid for health insurance for self, spouse and children. Premium up to Rs 25,000 is eligible for tax exemption. Apart from this, you can also get income tax exemption on premium up to Rs 25,000 for buying health insurance for your parents. If your parents are senior citizens, you can get income tax exemption on health insurance premium up to Rs.30,000 for them. Accordingly, by taking health insurance for yourself and senior citizen parents, you can save tax on premiums up to Rs 55,000.
Section 80D and Section 80DD
Apart from section 80D, there are two more sections in the Income Tax Act, where you can take advantage of health related expenses. Section 80DD deals with medical expenses for a disabled person dependent on you. Dependents can be spouses, children, parents, brothers or sisters. Income tax exemption depends on how severe your dependent’s disability is. Medical expenses up to Rs 75,000 can be covered for tax savings if the dependent is disabled up to 40 per cent. Medical expenses up to Rs 1,25,000 can be covered for tax savings if the dependent is disabled up to 80 per cent.
Section 80 DDB
Expenses of cancer, kidney disease etc. are also covered under section 80DDB. This tax exemption can be availed in case of illness expenses for self or dependent. Tax exemption can be availed on expenditure of up to Rs. For dependents aged 60 to 80 years, the sickness cost under the exemption can be up to Rs 60,000. The tax exemption limit can be up to Rs 80,000 in case of super senior citizens.
Section 80U
If you yourself are more than 40 percent disabled, then you can get income tax exemption under this section. However, section 80U and section 80DD cannot be availed together. The benefit of tax exemption under this section is same as in section 80DD. The only difference is that this section deals with own disability, while section 80D deals with dependents.
section 80E
If you have taken an education loan for yourself, your spouse, child, then you can get exemption under section 80E on the interest amount. This amount can be up to any limit and can be taken for studies anywhere in the country/abroad. The condition for getting the exemption is that the loan should be taken for full time higher education and taken from any financial institution or charitable institution.
section 80G
Donating to charity can also reduce your liability. By donating to several funds notified by the government, you can get tax exemption on 100% of the amount. This section is very beneficial in case your income becomes taxable due to few thousand rupees. In that case, if you donate a few thousand rupees, then your taxes will also save more money. For example, if your taxable income is 5 lakh 10 thousand, then you will have to pay tax on Rs 2.60 lakh. 5 per cent on 2.5 lakh and 10 per cent on 10 thousand. That is, the total tax will have to be paid around Rs 13,500. In such a situation, if you donate 10 thousand, then your taxable income will be 5 lakh, on which no tax will be levied. Meaning you saved tax of 13,500 by donating 10 thousand rupees i.e. profit of 3500 rupees.
Section 80TTA
Interest earned from deposits in a bank account or post office has to be shown in the return under the head Income from other sources. If your interest is less than Rs 10,000 in any one financial year, then you can get income tax exemption on it under this section. However, on interest income above Rs 10,000, you have to pay tax as per your income tax slab.
also watch this video
How To File ITR on New Income Tax Portal: How to File ITR on New Income Tax Website?
.