Master your finances: 7 ways to save on Income Tax
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1. Invest in Section 80C Instruments:
Section 80C of the Income Tax Act offers deductions up to Rs 1.5 lakh on investments in instruments such as PPF, EPF, ELSS and NSC.
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2. Utilize Section 80D for Health Insurance Premiums:
Under Section 80D, premiums paid towards health insurance for yourself, spouse, children, or parents are deductible.
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3. Claim House Rent Allowance (HRA):
If you receive HRA from your employer and live in a rented house, you can claim exemptions under Section 10(13A) of the Income Tax Act.
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4. Home Loan Interest Deduction (Section 24):
If you have taken a home loan, you can claim deductions on the interest paid under Section 24. For a self-occupied property, up to Rs 2 lakh can be claimed annually.
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5. Invest in NPS (National Pension System):
Contributions to NPS qualify for deductions under Section 80CCD(1). An additional deduction of up to Rs 50,000 is available under Section 80CCD(1B).
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6. Utilize Section 80G for Donations:
Donations made to specified funds and charitable institutions are eligible for deductions under Section 80G.
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7. Income from Agricultural Activities:
Income derived from agricultural activities is exempt from income tax under Section 10(1). This includes agricultural income earned directly by an individual.