The term tax saving refers to the practices done by a company or an individual to save tax. Income from any source like salary, business rent or investment is taxable. However, under various sections, there are specified guidelines for diductions:
- 80CCD- Under section 80C, the deduction of tax is made from the total income earned in a specific financial year. Here are the expenses and schemes that this section includes
- Home loan repayment
- Tax savings FD
- Life insurance premium
- National saving certificate
- Public provident fund
- senior citizen saving schemes
- National pension
- Equity-linked savings
- Section 80CCD- Tax benefits on investing in the national pension system
- Section 80D-diductions up to 1 lakh for health insurance premium
- Section 80E- Tax savings on education loans (higher studies)
- Section 80EE- tax deduction for first-time buyers and deductions on interest for a home loan
- Section 80G-Tax savings on donating to charitable (50% to 100%)
- Section 80GG- Deductions in house rents if you get HRA from the employer
- Section80TTA- It allows to claim up to INR 10000 as a tax deduction
- Section80DD: if you are a depended with a disability, then you can gain tax benefits
- Section 80U: tax deductions benefits from a person who is at least 40% disabled.
- Section 80GGC: Tax benefits for donating to registered political parties.
