You can save your Income Tax lawfully. There are various deductions available through which you can save your tax. Utilize the investment process properly for your tax planning. Some of the Popular deductions are Deduction under Section 80C, Deduction under Section 80D, Deduction under Section 80E, deduction Under Section 80TTA and deduction Under Section 80TTB. In this article we will discuss about the same:-
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If you have paid excess taxes, but have invested in LIC, NSC,KVP, 5 yrs Fixed Deposit, Sukanya Samridhi Account, Principal repayment of housing loan,paid school fees of children or any other investments eligible for 80 C deduction then you can file your Income Tax Return and get a refund.
You can avail the tax deduction under section 80D if you have paid any premium on mediclaim policy under section 80D taken for:
Quantum of Deduction:
The deduction under section 80E for Interest on educational loan is available to an individual if following conditions are satisfied:
1. Section 80E Deduction for educational loan available only to Individual not to HUF or other type of Assessee.
2. Deduction amount under Section 80E: – The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan.
3. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Section 80TTA provides a deduction of Rs 10,000 on interest income. This deduction is available to Resident Individual or HUF (other than those assessee who has covered in Section 80TTB).
This deduction is allowed on interest earned –
Maximum Deduction – The maximum deduction is limited to Rs 10,000. If your interest income is less than Rs 10,000, the entire interest income will be your deduction. If your interest income is more than Rs 10,000, your deduction shall be limited to Rs 10,000. (You have to consider your total interest income from all banks where you have accounts).
How to claim the deduction – First add your total interest income under the head ‘income from other sources’ in your Return and then consider the deduction under section 80TTA.
This section will provide deduction in respect of interest on deposits. This section is available to Resident individual who is of the age of sixty years or more at any time during the relevant previous year
This deduction is allowed on interest earned –
Maximum Deduction – The maximum deduction is limited to Rs 50,000. If your interest income is less than Rs 50,000, the entire interest income will be your deduction. If your interest income is more than Rs 50,000, your deduction shall be limited to Rs 50,000. (You have to consider your total interest income from all banks where you have accounts).
How to claim the deduction – First add your total interest income under the head ‘income from other sources’ in your Return and then consider the deduction under section 80TTB.
(Republished with Amendments)
Over & above Rs.150000/-U/S 80 C,you may save to the extent of Rs.50000/-U/S 80ccd.This will result in extra saving of income-tax to the tune of Rs.15450/-