Tax Savings

Income from any source such as salaried income, income from a business, rental income, income from investments is taxable. Tax saving is a practice to save tax by making investment declarations.  However various sections of the Income-tax act allow deductions as per the stipulated guidelines.

  • Section 80C reduces tax liabilities by allowing deductions from total taxable income in a financial year if your investments come under the following schemes and expenses:
    • Equity Linked Savings Scheme
    • Senior Citizen Savings Scheme
    • National Pension System
    • Term Life insurance premium
    • Public Provident Fund
    • National Savings Certificates
    • Tax-saving FDs
    • Home loan repayment
    • Tuition fees
  • Section 80CCD stipulates deductions for investments made in National Pension System (NPS) which brings about tax savings.
  • Section 80D allows deductions up to Rs. 1 lakh for Insurance premiums paid for self, spouse, children, and parents.
  • Section 80E allows for tax savings on education loan repayment.
  • Section 80EE allows for a deduction on home loan repayments for the first time buyer. This is in addition to the deduction for home loan repayments under Section 80C.
  • Section 80G allows for deductions made to charitable organizations approved under the Income-tax act.
  • Section 80GG allows for deductions for HRA received as part of salary or rent paid for furnished or unfurnished accommodations.
  • Section 80TTA allows you to claim a deduction of Rs. 10,000 on your interest income. This deduction is only available to individuals and HUFs conditionally.
  • Section 80DD deduction under if you have a dependent who is differently-abled and entirely dependent on you for maintenance.
  • Section 80DDB allows claim tax deductions on medical expenses incurred to treat specific ailments as specified under the section.
  • Section 80U allows individuals who have been certified to be at least 40% disabled (as stipulated under the section) by relevant medical authorities according to government rules to claim tax benefits.
  • Section 80GGC allows individuals to claim tax deductions on contributions to political parties registered under Section 29A of the Representation of the People Act. Tax deductions can be availed on 50-100% of the contribution amount. Donations of up to 10% of your gross earnings can be made to any political organization of your choice.