How to save tax

Deduction available to individual & HUF

Deduction on account of investment in specified fund by  Individual /HUF (under section 80C)

Maximum amount of deduction is 150000. if individual contribute in :

  1. Life Insurance Policy
  2. NSC
  3. Fixed deposited for 5 years
  4. Tuition fee
  5. Public Provident fund (PPF)
  6. Provident fund
  7. National Saving Certificate
  8. Sukanya Samriddhi Yojana:
  9. 5-year Post Office Time Deposit
  10. Senior Citizens Savings Scheme (SCSS):
  11. Equity Linked Savings Scheme (ELSS)
  12. Housing Loan repayment
  13. Stamp duty and registration charge for property purchase
  14. Unit Linked Insurance Plan (ULIP)
  15. NABARD bonds:

Deduction on account of pension fund (under section 80CCD)

Contribution is made in    National Pension Scheme or Atal Pension Yojana  

maximum amount of deduction is 50,000

Medical Insurance Premium and Preventive Health Check up (u/s 80D)

  1. Self, Spouse and dependent  children
  2. Medical premium for dependent parent 
  3. Either of parent is senior citizen                                                                 
  4. Preventive Health Check up
 
 
  1. amount of deduction 25,000
  2. Amount of deduction will be 25,000 (self and spouse) plus Rs 25,000 ( for parents)
  3. Amt of deduction Will be 25,000(self & spouse) Plus 50,000( for parent )
  4.  Preventive health check up 5000( even paid in cash)

Medical treatment of Handicapped dependent or Payment to the specified scheme for maintenance of handicapped dependent

Individual / HUF

  1. Disability is more than 40% but less than 80%- deduction 75,000
  2. Disability is more than 80%- deduction of Rs 1.25,000

Deduction against Interest Income to Individual / HUF

  1. Section 80TTA
  2. Section 80TTB 

Type of income 

  1. Available to Individual /HUF on . Interest on saving account 
  2.  Senior Citizen interest on deposit(saving / Fixed Deposit)
Amount of deduction
 
  1. Rs. 10,000
  2.  Rs. 50,000

Interest on higher education u/s 80E

Deduction is available to Individual

100% of amount of interest paid upto 8 years

Donation to Charitable institute 

To all the taxpayer made the donation in the financial year

50% of amount of donation or 100% amount of donation.

Deduction of Housing Rent paid 

Individual / Spouse does not own house property. Individual is not claiming HRA

Amount of deduction is lower of three: 

  1.  Rs. 60,000
  2. Rent paid -10% of salary
  3. 25 % of total income 

Interest on Housing loan u/s 24(b)

  1. Amount of deduction 2,00,000 in case house is self occupied
  2. Total amount of interest if house is let out.

Loan is taken for purchase or construction of House Property

Interest on House Property

Deduction is available to:

  • Individual
  • Loan is sanction to first time house purchase of Rs 35,00,000. 
  • Value of house property should not exceed rs. 50,00,000.
  • Deduction up to Rss. 50,000
  • Until the loan is repaid 

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