6 Proven Ways To Reduce Your Taxable Income

Tax Exemption Under Small Savings Scheme

Taxpayers can get tax exemption under section 80C of Income tax act on the premium or investment in small savings schemes such as PPF (public provident fund), ELSS (equity linked savings scheme), LIC, EPF, Home loan repayment, Senior citizens savings schemes, Sukanay Samriddhi Yojana, ULIP, etc.

Invest in Health Insurance

You can claim tax deductions on the premium paid for health insurance under section 80D. The limit is Rs 25,000 and can be increased to Rs 50,000 for senior citizens.

House Rent Allowance (HRA)

If you receive HRA as part of your salary or pay rent, you can claim tax deductions under section 80GG.

Home Loan Interest

Under section 24, you can claim deductions on the interest paid on your home loan, with a limit of up to Rs 2 lakh.

Savings Account Interest

Interest on your savings account is tax-exempted up to Rs 10,000 under section 80TTA. For senior citizens, the limit is Rs 50,000 under section 80TTB.

Contribute to Charity

Donations to government-verified charities can help you claim tax deductions between 50% to 100% of the contributed amount and up to 10% of your adjusted total income under section 80G. For donations towards scientific research or rural development, section 80GGA applies.

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