Section 80C of the Income Tax Act of India is a clause that points to various expenditures and investments that are exempted from Income Tax. It allows for a maximum deduction of up to Rs.1.5 lakh every year from an investor’s total taxable income.
Section 80C is applicable only for individual taxpayers and Hindu Undivided Families. Corporate bodies, partnership firms, and other businesses are not qualified to avail tax exemptions under Section 80C.
Medical Insurance Deduction (Section 80D):
You can claim tax exemption on the premium paid towards medical insurance for self/family and dependent parents. You can claim up to Rs. 25,000 on premium paid for self/family and up to Rs. 50,000 on premium paid for dependent parents, So, total
Interest on Home Loan (Section 80C and Section 24):
You can claim up to 2 lacs under Section 24 of the Indian Income Tax Act, 1961 takes into consideration the amount of interest an individual pay for home loans. This is also known as “Deductions from income from house property.” Basically, it allows you to claim tax exemptions on the interest amount of your home loan.
Deduction on Loan for Higher Studies:
Income tax act provides a deduction for interest on education loans. You can claim deduction from the year you start paying the EMI restricted up to the tenure of 8 years or before repayment of the loan whichever is earlier.
Deduction for Donations (Section 80G):
Section 80G of the Income Tax Act offers income tax deduction for those who makes donation to charitable organization.
Deduction on Savings Account Interest (Section 80TTA):
You can avail a tax exemption on the interest earned up to Rs. 10,000 on saving bank accounts.
Additional Deduction on Interest (Section 80EE):
You can avail additional deduction of interest on Rs. 50000 apart from the interest on home loan EMI. However, the loan amount should not exceed Rs. 35 lacs.
Income Tax exemption on Relocation allowance:
An individual who relocates due to his official work can avail exemption on Car Transport, Car Registration Charges, Packaging Charges, Accommodation, Train/Air Tickets, Brokerage paid on rented house and school admission fees.
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