As 31st March is approaching, everyone is busy preparing their tax information. You must be jotting down your major purchases, bills and investments made in the passing financial year. If you calculate your earnings and the tax you may have to pay upon it, it can be a pretty huge amount. Here you may be thinking, what if I can save the taxes? Well though it’s not that easy to save tax on your annual earning, but if you know a few income tax sections, you may be able to save a hefty amount.
Paying income tax is your national duty so if you save your income tax by following these sections, it won’t be against the law. So know in detail, under which Income Tax section you can get tax exemptions.
- Section 80C: Investment up to Rs. 1.5 lakh in one financial year can be claimed for tax deduction
- Section 80EE: Deduction up to Rs. 50,000 on home loan interest rate
- Section 80D: You can claim up to Rs. 75,000 on medical treatment of your dependents (parents, siblings, spouse and children). For adverse disability claim up to Rs. 1.25 lakh as tax exemption.
- Section 80DD: Claim a deduction up to 25,000 (Rs. 50,000 for Senior Citizens) for your medical insurance’s annual premium.
- Section 80DDB: You can claim up to Rs. 40,000 exemption for the treatment of a specified critical illness, if you are below 40 years of age. You can make the same claim for your dependents too. Under the same norms, senior citizens (above 60 years of age) can claim up to Rs. 60,000 and those above 80 years can claim up to Rs. 80,000 tax deduction.
- Section 35AD: You can avail tax benefits if you have manufacturing enterprises and/or introducing any new venture.
- Section 80E: Get tax exemption if you have an education loan going on in your name or in the name of your dependent.
- Section 80RRB: You can get tax exemption on the income received by way of patents and royalties. Up to Rs. 3 lakh can be tax exempted as per the Patent Act of 1970.
- Section 80U: The disabled can avail tax exemption under this section up to Rs. 1 lakh. They have to show a certificate of disability to avail this tax benefit.