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.We will discuss about the same:-
DEDUCTION U/S 80C
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.
DEDUCTION U/S 80D
You can avail the tax deduction under section 80D if you have paid any premium on mediclaim policy under section 80D taken for:
If you pay premium for health insurance taken for you and your family then you can claim tax deduction under section 80D /payment for mediclaim of parents then you can claim tax deduction under section 80D
DEDUCTION U/S 80E
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. Deduction shall be allowed in computing the total income in respect of the initial assessment year* and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assesse in full, whichever is earlier. Hence it is better that the education loan is repaid within eight years.
DEDUCTION U/S 80TTA
Section 80TTA provides a deduction of Rs 10,000 on interest income. This deduction is available to an Individual and HUF.
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. The deduction is shown under section 80 Deductions under section 80TTA.
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