The Income Tax Act allows for separate income tax exemptions that can be reported at the moment of filing ITR. The total taxable income will be taxed in accordance with the person’s income tax rate.
There are different income tax exemptions that the individual/HUF is eligible to claim. The most commonly used income tax deductions that can be quickly claimed and are effective in lowering the tax burden are being discussed below.
The most commonly used income tax section for reducing taxable income
Here are the income tax section for reducing the taxable burden
Section 80C
This type of deductions only the individuals and undivided Hindu families get. Their amount limit is Rs. 1,50,000 only when we have done investment like LIC, NSC, and Senior Citizens and the payment should be in the form of Installments.
Must Read – What is Section 80C?
SECTION 80 CCC
When people invest in LIC Pension Fund. So in that case, only the individuals will get the deduction and the limit of the deduction amount is Rs. 1,50,000 only.
Must Read – What is Section 80CCC?
SECTION 80CCD
When any person invests in the Central Government Scheme. In this, an employee of the government who has been appointed after 1-4-2004. An employee of another employer asses being an individual. In this case, the money you pay in the form of tax on that particular year only that many deductions you will get.
SECTION 80TTA
In this type of section only the individuals and HUF will get the deduction and their eligible income is interest on the deposits in the Saving A/C ( Not Fixed ) and the amount of deduction is 100% or 10,000 early only.
SECTION 24
In this section, only those people can take a deduction whose purpose is for construction, repairs and renovation and the amount of deduction of 30 % of the Net Value.
SECTION 80CCG
In this section, this deduction is done for the Equity Saving Scheme ( Rajiv Gandhi Equity Saving Scheme ELSS ) only for the purpose of deduction amount should be not less than Rs. 12,00,000 . He should be a new retailed investor lock at the period of 3 years from acquiring the shares limit is 50% of Investment or Rs. 25,000 only.
SECTION 80D
In this section, the deduction is done on the basis of Health Insurance Premium, Medical Expenditure and Preventive Health Checkup.
- Health Insurance: When we claim in the ITR deduction of Rs. 1,00,000 only if we have done transactions in the form of a cheque.
- Medical Expenditure: It is introduced in India in the year 2018 and it is only for senior citizens and their deduction amount is Rs. 1,00,000 only if the transactions is done in the form of a cheque.
Section 80DD & Section 80U
If the person is injured, a deduction under Section 80DD will be permitted and, in the event that any dependent family member of the person is impaired, a deduction u/s 80U will be permitted.
Impairments at which deductions u/s 80DD & Section 80U is permitted have been specified in the income tax Act.
Section 80DDB
Income tax deductions are often permitted for the treatment of defined illnesses. If an individual and any of his or her reliant children are diagnosed for any given illness, a deduction u/s 80DDB of the overall amount paid or ₹40,000, whichever one is higher, will be permitted.
Section 80E
The person shall be entitled to a deduction of income tax u/s 80E for the payment of interest on the home mortgage to the Higher Education of the Self, Partner or Reliant Kids.
It must be remembered that such an allowance is only for the payment of debt on the school loan and not for the refund of the principal balance of the education loan. The positive thing of this income tax exclusion is there was no cap on the sum of the deduction which can be asserted.
Section 80G, 80GGA, 80GGB, 80GGC
During the FY, if an individual has rendered some contribution to any recognized entity, a deduction should be given for the same amount.
Deduction u/s 80G is a common deduction, while deductions under Section 80GGA, 80GGB & 80GGC are particular deductions.
Section 80GGA is for donations for scientific research or rural development purposes, Section 80GGB & Section 80GGC is for contributions to political groups.
Section 80GG
If the person has paid House Rent and has never really claimed income tax deductions for Rental payments under any provision of law, the individual may demand a deduction u/s 80GG.
In other terms, an employee who hasn’t even made use of the HRA exemption and any other individual who hasn’t even claimed rental expenses charged in any other provision of the Income Tax Act is entitled to a deduction under such a section according to the limitations set out in Section 80GG.
