Are You a Salaried Individual? Read These Tips for Income Tax Planning. - Loan Trivia


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Thursday 19 December 2019

Are You a Salaried Individual? Read These Tips for Income Tax Planning.

Every earning individual can save the amount of money spent on their income tax by easily following the few essential planning tips which are listed beneath –
  • 1) Sections 80C, 80CCC, and 80CCD: Under these sections, a total tax saving of Rs. 1.5 Lakh can be availed by earning individuals. This can be availed under a single section like 80C or 80CC. For pensioners, investing in National Pension Scheme can help them an additional tax of up to Rs. 50,000.
  • 2) Sections 80D, 80DD, and 80DDB: These sections allow earning citizens of the country to avail tax benefits in case they have invested in a health insurance policy. There are different slabs of these benefits depending on the investment made.
  • 3) Section 80E: Education loan borrowers can claim tax deduction under this section of income tax rules. It includes everything taxpayers need to know about saving tax when they take a home loan. This deduction is only allowed on the repayment of interest and not on the principal amount.
  • 4)Section 24(b): This section allows customers to claim deduction on the interest paid on a home loan. This sum can go up to a maximum of Rs. 2 Lakh.
  • 5) Section 80CCG: Rajiv Gandhi Equity Saving Scheme allows individuals earning less than Rs. 12 Lakh per annum additional deductions if they invest in shares of specific companies and mutual funds.
  • 6) Section 80G: Donations made towards the Prime Minister's National Relief Fund (PMNRF) or other philanthropic purposes are allowed a deduction too.
Knowing about income tax in India essentially helps in saving a lot of an individual’s hard-earned money. The tax rules listed above are the most effective tax saving options from the Income Tax Department of India.

These are some of the most vital home loan tax deduction. that every new and existing borrower should be aware of.

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