Income Tax News: As the well-known proverb states, “A penny saved is a penny earned.” One way to reduce your taxes and raise your income is through tax planning. The Income Tax Act allows deductions for a range of investments, savings, and expenses that a taxpayer may incur during a given fiscal year. We’ll talk about a few ways you can reduce your tax liability.
Take advantage of Section 80C tax benefits by purchasing a home loan
While Sections 80C and 24(b) reduce financial liability by lowering tax burdens, numerous government-mandated programmes, such as the PMAY (Pradhan Mantri Awas Yojana) and DDR (Delhi Development Authority) Housing Scheme, aim to increase housing accessibility in India.Up to 1.5 lakh in Section 80C deductions are available for the entire yearly income used for repaying the principal amount borrowed. Up to Rs 2 lakh in annual tax exemption is granted on the interest portion of a home loan under Section 24(b).
Health insurance policy
Under Section 80D, individuals can deduct from their taxable income the amount of money they pay in premiums each year. Different sums are excluded from such income tax computations based on the covered’s age.
Put your money in government-run programmes
Several government-mandated programmes provide tax exemptions in addition to substantial returns on total investments. Under Section 80C of the Income Tax Act, an individual may deduct up to Rs 1.5 lakh from their total yearly income as tax waivers for investments of this type.
Buy life insurance plans
The Income Tax Act’s Section 80C deals with premium payments, and Section 10(10D) deals with the amount promised to be received at the insured’s maturity or early death, whichever comes first. However, if the insurance is purchased after April 1, 2012, Section 80C allows for the tax benefit of up to Rs 1.5 lakh paid on yearly premiums, as long as it represents less than 10% of the total amount assured.
As long as the total premium payments do not surpass 20% of the guaranteed amount, claims under Section 80C may be made if the policy was acquired prior to April 1, 2012.Purchase or renewal of life insurance, as well as annuity payments made using monthly salary on such plans, qualify for up to Rs 1.5 lakh in tax exemptions under Section 80CCC.
Investment options under Section 80C
The Income Tax Act’s Section 80C offers the most well-liked tax-saving choices for individuals and HUFs in India. You can deduct up to Rs. 1.5 lakh from your eligible expenses and a variety of investments under this section.
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