Filing income tax returns is not as easy as it seems. Not only do you have to consider the amount of tax you have to pay but check where you can save money in the process. This is where the Section 80 of the Income Tax Act, 1961 comes into play. This section has various subsections that apply in various scenarios and help you in saving money spent towards paying income tax. However, not all subsections may be relevant to you. So, today, we will be talking about the tax deduction under Section 80 that you can avail as a healthy individual. So, here goes.
Tax Deduction Under Section 80 For Healthy Individuals
Under this section, you can avail tax deductions for various expenses. The list is long but we will try to keep it short for you. These are the things that come under this section’s ambit – PPF investment, employee’s PF contribution, NSC investment, life insurance premium, Unit-Linked Insurance Plans and Equity-Linked Saving Scheme. Principal repayment of home loan and children’s tuition fee are also included under this section.
This section provides you tax deduction for investing in an annuity (pension) plan from Life Insurance Corporation of India. Further parts of this section (Sections 80CCD(1), 80CCD(2) and 80CCD(1B) ) govern deductions towards contributions by employer and employee towards National Pension Scheme. If you make any additional payments towards National Pension Scheme, that is also covered here.
One tax deduction under section 80 you should watch out for is this. Why? This section covers the income you earn from interest on savings account. Watch out for the amount you earn and whether it has been revised or not.
Another tax deduction under section 80 to watch for is this. When you do not receive HRA from your employer when living in a rented accommodation, this is the section that helps you save tax. Keep an eye out for the ceiling that is put in effect in this case.
This section governs the tax deductions in case of interest paid on your child’s education loan. What is important to note here is that only if your child is in Indian institution will you be eligible to claim deduction under this section.
For first-time home owners, this bit is crucial. THis tax deduction under section 80 helps you save tax on interest paid towards home loan. This will help reduce the financial burden on you.
Do you have medical insurance for yourself and your family? Then this is the section that covers tax deductions in case of medical insurance premium you pay.