Paying taxes can burn a hole in your pocket, but you have to act smart and you must know how you can save yourself from shelling out a lot of money on taxes.If you were looking out for various types of tax deduction, then we have something which will give you better insight about it. When we talk about tax deduction we must know about section 80.
The Deductions you can claim under Section 80
You can get a tax deduction of 1,50,000 under section 80C, this deduction can be claimed from the tax payer’s total income. In short you can save 1,50,000 from your taxable income through 80C, this tax exemption is applicable for individuals as well as HUFs.
In the financial year 2016-2017 you can claim a tax deduction of upto 1,50,000, in the year 2017-2018 you will get a tax deduction of 1,50,000 under section 80C.
This section mainly focuses on the deductions on interest on savings account. Section TTA talks about the deduction from Gross total income for interest on savings account. Under this section the tax payer can save up to an amount of 10,000, which can be claimed against an interest income from a savings account. An individual, as well as HUF, can claim this deduction. To claim it they need to first include the interest from the savings account to other income. Deduction of tax on income from Fixed deposits, interest income on corporate bonds or recurring deposits does not fall under Section 80TTA.
This section mainly deals with the tax deduction on the house rent paid where House Rent Allowance (HRA) is not received. To claim this deduction the taxpayer should be living in the house on rent and pay rent. The taxpayer should not have any other self-occupied property. The taxpayer, spouse or minor children should not own any self-occupied residential property. The deduction available to the taxpayer is 25% of the total income. Paid rent minus 10% of the total income, 5000/- per month. For the financial year 2016-2017, deduction amount has gone up from 2000/- per month to 5000/- per month. So, according to the new rule maximum, 60,000/- can be claimed for deduction, by the taxpayer.
Section 80E majorly talks about the tax deduction on the interest of the Education loan taken for higher education. A tax deduction can be claimed on the interest paid for education loan. This loan can be taken for taxpayer, children, spouse or for someone to whom tax payer is the legal guardian. There is no restriction on the amount that can be claimed under this section. The deduction under this section is available for 8 years or till the interest is paid, whatever is earlier.
This section of Income Tax Act came into being on 1st April 2004, this section talks about the tax deduction for a person suffering from Physical disability including blindness and mental retardation. This is a fixed deduction and it is not based on bills or expenses. A deduction Rs. 75,000 can be claimed under this section. In case of severe disability, a deduction of Rs. 1.25Lakhs can be claimed. To claim deduction a medical certificate from a government doctor should be presented.