Key Points
Apart from the tax deductions and exemptions available under the popular sections of the Income-tax Act, 1961 like 80C, 80D, 80G, 80 DD etc, there are other tax breaks one can use to save tax..
Section: 80CExtent of withdrawal permitted: Loan facility is available from the fourth year and withdrawal facility is available from 7th year under the PPF scheme.Watch out: Given the restriction of only one partial withdrawal per financial year, initiating the tax-planning process early and accurately estimating the required amount will be beneficial for you.. 3..
Section: 10(13A)Maximum permissible deduction: Actual HRA received or excess of rent paid over 10% of salary or 50% of the basic salary (40% if you live in a nonmetro), whichever is lower.Watch out: Formalize the landlord-tenant arrangement by getting a lawyer to create a comprehensive rent agreement, outlining the specific details of rent payments..
Section: 80DMaximum permissible deduction: Rs 75,000 (Total cap on tax benefits, assuming the tax-payer's age is less than 60 years and parents are senior citizens)Watch out: If your employer has funded the entire premium, you cannot stake a claim on the tax benefits...
Section: 80DMaximum permissible deduction: Rs 50,000Watch out: This expense will not be allowed as a tax break if they are covered by a health insurance policy...
