Quite often, you might have heard about income tax saving sections such as section 80C. Here is a glance at all those sections which help you save tax:
Deduction under section 80C can be claimed through instruments such as life insurance premium, PPF, NSC, tuition fees, EPF, ELSS, Home loan principal, etc. Deduction limit for this section is Rs. 1.5 lakh. This is one of the most popular are most utilized sections when it comes to tax saving.
Section 80CCD (2)
Deduction is available on employer’s contribution to NPS account. Employer can contribute up to 10% of salary under this section. There is no upper limit for deduction as per this section.
Rajiv Gandhi Equity Saving Scheme (RGESS) helps the first time stock market investors to save tax by investing either in direct stocks or designated mutual funds. Though there is no investment limit on this, you will get deduction only up to 50% on maximum amount of Rs. 50,000.
As per section 80D, you can claim deduction for health insurance premium paid up to Rs. 15,000. If you are a senior citizen, this limit will go up to Rs. 20,000. In case you are paying for yourself as well as your senior dependant parents, deduction limit will be Rs. 35,000.
This is the deduction claimed for interest paid on loans taken for higher education. You can also claim this deduction for loans taken on the name of spouse or children too. The best part about this is that there is no upper limit on the interest that can be claimed.
If you are a philanthropic person, you can also save some tax from your donations. You can make donations to approved trusts or other institutions and claim deduction up to 50% or 100% on the amount donated.
If your employer does not provide you HRA, you have another option to claim deduction on the rent paid as per this section. You can claim maximum of Rs. 2,000 per month under this.
Interest from saving bank account is deductible as per this section. Deduction limit is Rs. 10,000 p.a.
If you are suffering from any kind of disability, you can claim deduction on the expenses incurred upon you. The deduction allowed is Rs. 50,000 or Rs. 1,00,000 depending on the severity of the disability. Make sure that the disability is part of this section.
This section helps you save tax on the interest paid on home loans. Limit that can be claimed is Rs. 1,50,000 for self occupied property. For a rented property, there is no upper limit.