11 Useful Income Tax Deductions for 2017-18 housing benefit gov uk

The income tax act provides for various income tax deductions which can be claimed at the time of filing of income tax returns. The total taxable income (after reducing the income tax deductions that have been claimed) would be taxed as per the income tax slab rates of the individual.

The indian income tax department encourages its citizens to make use of the various income tax deductions, income tax exemptions and income tax rebates allowed under the income tax act which help the taxpayers to reduce their taxes in india legally. (recommended read: how to save tax legally in india) 11 useful income tax deductions to save taxes

There are various income tax deductions which are allowed to be claimed by an individual/ HUF. The most useful income tax deductions which can be easily claimed and are helpful in reducing the tax burden have been explained below. 1.Www housing benefit gov uk

income tax deduction for investments specified under section 80C

The most popular income tax deduction is the deduction under section 80C which is allowed for making investments in certain specified instruments. There are many instruments in which investments can be made. Some examples of specified instruments are

Deduction under section 80CCC and sec 80CCD are income tax deductions which are allowed for payment of any amount to initiate or to continue any annuity plan of any insurance company for receiving any pension, the individual would be allowed a deduction for the amount paid under section 80CCC.

And in case the individual has made the contribution to notified pension scheme of the central govt i.E. The national pension scheme (NPS), the individual would be allowed a deduction under section 80CCD.

From financial year 2015-16 onwards, an additional deduction of rs. 50,000 is allowed for investment in NPS account.Www housing benefit gov uk this additional deduction of rs. 50,000 is over and above the deduction allowed to be claimed under section 80C and section 80CCC.

A deduction of rs. 10,000 under section 80TTA (specified in chapter VI-A) is also allowed to be claimed from the interest earned on bank savings account. Such interest income is first added under head “income from other sources” and then deduction from such income is allowed under section 80TTA subject to a maximum of rs. 10,000 p.A.

If a taxpayer has taken any home loan, he would be allowed to claim a deduction for the interest levied on such a loan. It should be noted that this deduction under section 24 is for the interest levied and not for the interest paid.

This deduction is also known as the rajiv gandhi equity savings scheme. This income tax deduction is allowed to an individual who has invested in listed shares or listed mutual funds in a given financial year.Www housing benefit gov uk the deduction allowed for such an investment would be 50% of the amount invested subject to a maximum of rs. 25,000 only.

If an individual/HUF has made any payment for medical insurance premium for himself, spouse, dependent children, he would be allowed to claim an income tax deduction for the same. The deduction allowed under this section varies depending on whether the person insured is a senior citizen or a non senior citizen.

If the individual himself is disabled he would be allowed a deduction under section 80DD and in case any dependent family member of the individual is disabled, he would be allowed a deduction under section 80U.

Income tax deductions are also allowed for treatment of specified diseases. If a person or any of his dependents is being treated for any specified disease, he would be allowed a deduction under section 80DDB of the amount actually paid or rs. 40,000 whichever is higher.Www housing benefit gov uk

It should be noted that this deduction is only for the repayment of interest on education loan and not for the repayment of the principal amount of the education loan. The good part about this income tax deduction is that there is no maximum limit on the amount of deduction that can be claimed.

In other words, a salaried employee who has not availed of the HRA exemption or any other person who has not claimed expenses for rent paid under any other section of income tax act, is allowed a deduction under this section subject to the limits prescribed under section 80GG.

The income tax act provides for various income tax deductions which can be claimed at the time of filing of income tax returns. The total taxable income (after reducing the income tax deductions that have been claimed) would be taxed as per the income tax slab rates of the individual.Www housing benefit gov uk

The indian income tax department encourages its citizens to make use of the various income tax deductions, income tax exemptions and income tax rebates allowed under the income tax act which help the taxpayers to reduce their taxes in india legally. (recommended read: how to save tax legally in india) 11 useful income tax deductions to save taxes

There are various income tax deductions which are allowed to be claimed by an individual/ HUF. The most useful income tax deductions which can be easily claimed and are helpful in reducing the tax burden have been explained below. 1. Income tax deduction for investments specified under section 80C

The most popular income tax deduction is the deduction under section 80C which is allowed for making investments in certain specified instruments. There are many instruments in which investments can be made.Www housing benefit gov uk some examples of specified instruments are

Deduction under section 80CCC and sec 80CCD are income tax deductions which are allowed for payment of any amount to initiate or to continue any annuity plan of any insurance company for receiving any pension, the individual would be allowed a deduction for the amount paid under section 80CCC.

And in case the individual has made the contribution to notified pension scheme of the central govt i.E. The national pension scheme (NPS), the individual would be allowed a deduction under section 80CCD.

From financial year 2015-16 onwards, an additional deduction of rs. 50,000 is allowed for investment in NPS account. This additional deduction of rs. 50,000 is over and above the deduction allowed to be claimed under section 80C and section 80CCC.

A deduction of rs. 10,000 under section 80TTA (specified in chapter VI-A) is also allowed to be claimed from the interest earned on bank savings account.Www housing benefit gov uk such interest income is first added under head “income from other sources” and then deduction from such income is allowed under section 80TTA subject to a maximum of rs. 10,000 p.A.

If a taxpayer has taken any home loan, he would be allowed to claim a deduction for the interest levied on such a loan. It should be noted that this deduction under section 24 is for the interest levied and not for the interest paid.

This deduction is also known as the rajiv gandhi equity savings scheme. This income tax deduction is allowed to an individual who has invested in listed shares or listed mutual funds in a given financial year. The deduction allowed for such an investment would be 50% of the amount invested subject to a maximum of rs. 25,000 only.

If an individual/HUF has made any payment for medical insurance premium for himself, spouse, dependent children, he would be allowed to claim an income tax deduction for the same.Www housing benefit gov uk the deduction allowed under this section varies depending on whether the person insured is a senior citizen or a non senior citizen.

If the individual himself is disabled he would be allowed a deduction under section 80DD and in case any dependent family member of the individual is disabled, he would be allowed a deduction under section 80U.

Income tax deductions are also allowed for treatment of specified diseases. If a person or any of his dependents is being treated for any specified disease, he would be allowed a deduction under section 80DDB of the amount actually paid or rs. 40,000 whichever is higher.

It should be noted that this deduction is only for the repayment of interest on education loan and not for the repayment of the principal amount of the education loan. The good part about this income tax deduction is that there is no maximum limit on the amount of deduction that can be claimed.Www housing benefit gov uk

In other words, a salaried employee who has not availed of the HRA exemption or any other person who has not claimed expenses for rent paid under any other section of income tax act, is allowed a deduction under this section subject to the limits prescribed under section 80GG.