Apart from 80 C,10 top salary deductions that can save tax – Have a look.
The time comes that most salaried people discuss how to reduce tax liabilities from his ITR most person’s usually focused on availing the Section 80C ,deductions. They overlook many other tax benefits eligibility. Have a look…………………..
1.Rent paid in case of self-employed
Under Section 80GG of I-TAct, section allowed for deduction in respect of rent paid by any individual for his own residence. He or She can be claimed the least of rent paid less 10% of his total income; 25% of his total income and Rs 5,000 per month.
2.Interest on loan is taken for higher education
Under Section 80E of the I-T Act with respect to interest paid towards loan taken for pursuing higher education, either for self or for a relative, i.e. spouse, children or as a legal garden. This deduction can be claimed for a period of 8 years beginning from the year of repayment of the loan.
3.Tuition fees paid for kids
Under Section 80C paying tuition fees for children’s education is a mandatory expense on part of the parents. The tuition fees you pay for the education of your kids in school, college or university can be claimed as a tax deduction
4.Interest earned from Savings Account
Under Section 80TTA of the I-T Act. Interest earned through saving accounts up to Rs 10,000 can be claimed as a deduction
5.Donations to charitable institutions
Under Section 80G of the Act available on donations made by an individual to certain funds, charitable institutions etc. The rate of deduction is either 50 or 100 percent of the amount contributed, depending on where the funds are donated. The deductions are restricted to 10% of the gross total income of the donor.
6.Person with disability
Under Section 80U of the Act, a resident individual who is certified by the prescribed medical authority to be a person with a disability can claim a deduction of Rs 75,000 and in case the individual suffers from a severe disability, the amount of deduction that can be claimed is Rs 125,000. (Claimed the actual amount of expenditure incurred)
7.Expenses Incurred on Treatment of Specified Diseases
Under Section 80DDB treatment of diseases like cancer, AIDS, etc. the I-T Act offers some relief to the taxpayers in the form of tax deduction “Diseases for which this deduction can be availed are mentioned under rule 11DD of the I-T Act. As per the provisions of Section 80DDB, a taxpayer can claim a tax deduction up to Rs 40,000. If the person is a senior citizen, then the deduction can go up to Rs 60,000.
8.Interest paid on personal loan taken for house purchase
Under Section 24 of the I-T Act, interest paid for a home loan is a commonly-known tax benefit. However, many taxpayers ignore this deduction if the tag of home loan is not attached to their loan even if they use it to construct or purchase a house. “It happens because the provisions of Section 24 are misunderstood by common people. You can avail the tax benefits offered by this section even if it was a personal loan taken from relatives or friends. The money from any such loan should be used in the construction or purchase of a house to get the tax benefits.
9.Interest Paid on Loan taken for Revamp or Reconstruction of House
Under Section 24b tax benefit available on loans are taken for face-lifting your house. you can get a tax deduction up to Rs 30,000 on interest paid for a loan taken to reconstruct your house.
10.Reinvest to Save on LTCG
Under Section 54 and Section 54F is less-known tax deduction is the deduction available on long-term capital gains r. People who have bought a house can save tax on LTCG arising from the sale of long-term capital assets if such assets are sold within a year from the date of purchase of the house.If the asset sold is a house which was held for 2 years, If the long-term capital asset sold is not a house, then deduction can be availed as per the provisions of Section 54F.