There are always many questions in the mind of the taxpayer regarding the exemption available under section 80C for deduction of income tax. If a taxpayer wants to deduct more than the prescribed limit in section 80C, then he can consider special options related to it.
new Delhi. Every year the responsible taxpayers of the country have to pay Income Tax . As the date of filing ITR returns draws closer, concerns also increase as to how to take advantage of the exemptions available in income tax. Since 2023 has already begun, the sooner you start your tax planning, the more you can save on your tax.
Income tax rates differ from person to person and depend on their income and profits earned from other sources. Also, the tax rates are different for individuals, senior citizens and corporates. However, the government also provides benefits in the form of tax deductions on certain investment instruments through which you can claim tax savings.
The sooner the planning the bigger the advantage
According to Mint’s news, Abhishek Soni, co-founder and CEO of tax2win, a fisdom company, said, to get more savings on income tax, its planning should be started on time. However, there is always a challenge before the taxpayer regarding which medium to adopt to save income tax. How much tax can one save, what is the lock-in period, how many tax deductions are available in income tax sections, especially under section 80, are many such questions running through the mind of the taxpayer.
Abhishek Soni, co-founder and CEO of Tax2Win says that the most popular options available to save income tax are under section 80C of the Income Tax Act which can help you claim tax deduction of up to Rs 150,000 in a financial year . If a taxpayer wants to deduct more than the limit prescribed in section 80C, then he can look at the options given below…
- Section 80TTA: Interest earned on deposits in savings accounts
- Section 80E: Payment of interest for repayment of education loan
- Section 80D: Premium paid for health insurance policies or medical expenses in case of senior citizens
- Section 24 (b): Interest paid on home loan
- Section 10 (10D): Payment on maturity of a life insurance plan
- Section 80EEA: Repayment of interest on home loan for first time home buyers
- Section 10(13A): Deduction on payment of house rent (if mentioned in salary break-up)
- Section 80GG: Deduction of house rent paid (if not mentioned in salary break-up)
- Section 80G: Donations made to charitable institutions.
- Section 80GGA: Donation for scientific research and rural development
- Section 80GGC: Donation to political parties or electoral trust
- Section 80DD: Medical expenses on treatment of persons with disabilities
- Section 80U: Flat deduction for a person with disability depending on the severity of the disability
- Section 80DDB: Medical disease
- Section TTB: Interest earned on deposits by senior citizens
Also, tax filing companies can help you analyze additional deductions that you can avail to get tax relief and more money in hand.
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