Lifestyle
Filing your Income Tax Return (ITR) may be onerous, but it has a significant benefit as it reduces your tax burden.
One way to accomplish this is to claim deductions under various provisions of the Income Tax Act.
These deductions allow you to deduct certain expenses from your taxable income, lowering the overall amount taxed by the government.
Interest paid on housing and housing improvement loans is deducted from house property income.
In self-occupied property, the maximum deduction for interest paid on a housing loan is Rs 2 lakh. However, this deduction is not available to those who choose the new tax regime.
Annuity plan of LIC or other insurer toward pension scheme.
Pension program of the central government.
Deduction limit of Rs 50,000. Deduction for payments paid to the central government's pension program, excluding deductions claimed under 80CCD (1).
Employer contributions to the federal government's pension program can be deducted up to 10% of their pay.