New Delhi: Taxpayers wanting to avail the tax exemption for financial year 2024-25 and are planning to file Income Tax Return (ITR) before July 31, 2025, they need to complete their investment by March 31, 2025. Some investment options which would help you reduce your tax liability.
The Income Tax rules allow taxpayers to claim exemption by investing in PPF, insurance, NPS, ELSS, etc, investment in medical insurance for self or parents. One can also claim tax exemption on interest paid for home loan, and interest paid on education loan.
Tax saving under Section 80c of Income Tax Act 1961
Taxpayers are eligible to avail deduction of up to Rs 1.5 lakh by investing money in options like Public Provident Fund (PPF), National Savings Certificate (NSC), Life Insurance Corporation (LIC) plans, and Unit-Linked Insurance Plan (ULIP).
Tax saving under Section 80cc of Income Tax Act 1961
If a taxpayer invests in pension schemes of life insurance companies, the individual will be eligible to get tax exemption of up to Rs 1.5 lakh.
Tax saving under section 80CCD (1) of Income Tax Act 1961
Under this Act, an individual can get a rebate of up to Rs 1.5 lakh on the amount deposited in the National Pension System (NPS). In such a situation, the maximum limit for availing deduction under section 80C, 80CCC and 80CCD (1) is Rs 1.5 lakh.
Tax saving under section 80D of Income Tax Act 1961
A taxpayer can claim tax deduction under Section 80D of the Income Tax Act, 1961 on the premium paid for medical insurance for himself or his wife or his parents and children. Its maximum limit in a financial year is Rs 25,000 for general people and Rs 50,000 for senior citizens.
Exemption under Section 80CCD (1B) of Income Tax Act 1961
Taxpayer can avail extra tax exemption of up to Rs 50,000 by investing in NPS, which is different from the limit of 80C.
How to save tax: Section 80C is the most popular options which allows taxpayers to claim deductions – up to a limit of Rs 1.5 lakh in a financial year. Investments which allows one to tax exemption are as follows: Unit Linked Insurance Plan (ULIP), Public Provident Fund (PPF), National Savings Certificate and National Pension System (NPS). Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
