Income tax deductions

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2017 CAN ANYBODY TELL ME THAT IF A PERSON IS A GOVERNMENT EMPLOYEE AND HAS EXHAUSTED HIS LIMIT OF 1,50,000 RS. OF SECTION 80C , THEN WHAT ARE THE OTHER WAYS TO SAVE TAX?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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20 February 2017 Medical Insurance u/s 80D , NPS Under 80CCD2

Vishal Mahajan

Vishal Mahajan (Querist)
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20 February 2017 how nps will help out? the person is already elligible for pension

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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20 February 2017 If you are eligible for pension, NPS Not applicable for deduction.

Vishal Mahajan

Vishal Mahajan (Querist)
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20 February 2017 can you please suggest some other ways to save tax?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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31 July 2024 Certainly! Here are some common ways to save tax for senior citizens and general taxpayers in India:

### **For Senior Citizens:**

1. **Section 80C Investments:**
- **Public Provident Fund (PPF):** Up to ₹1.5 lakh
- **National Savings Certificates (NSC)**
- **5-Year Fixed Deposit in a Scheduled Bank**
- **Senior Citizens' Savings Scheme (SCSS):** Offers higher interest rates and tax benefits under Section 80C.
- **Life Insurance Premiums**
- **Equity Linked Savings Scheme (ELSS)**

2. **Section 80D:**
- **Health Insurance Premium:** Deduction up to ₹50,000 for senior citizens.
- **Medical Expenses:** Deduction up to ₹50,000 for medical expenses if no health insurance is taken.

3. **Section 80DD and 80DDB:**
- **Section 80DD:** Deduction for expenses on medical treatment of a dependent with disability.
- **Section 80DDB:** Deduction for expenses on specified diseases for self or dependent up to ₹1 lakh for senior citizens.

4. **Section 80TTA and 80TTB:**
- **Section 80TTA:** Deduction up to ₹10,000 for interest on savings accounts.
- **Section 80TTB:** Deduction up to ₹50,000 for interest from savings accounts, fixed deposits, and recurring deposits for senior citizens.

5. **Section 80G:**
- **Donations to Charitable Institutions:** Donations made to specified funds and charitable institutions are eligible for deduction under Section 80G.

### **General Tax Saving Options:**

1. **House Rent Allowance (HRA):**
- If you pay rent and do not own a house in the city of employment, you can claim HRA exemption under Section 10(13A).

2. **Home Loan Interest:**
- **Section 24(b):** Deduction up to ₹2 lakh for interest on home loan for self-occupied property.
- **Section 80EEA:** Additional deduction up to ₹1.5 lakh for interest on home loan for affordable housing.

3. **Education Loan:**
- **Section 80E:** Deduction for interest paid on education loans for higher studies.

4. **National Pension System (NPS):**
- **Section 80CCD(1B):** Additional deduction up to ₹50,000 for contributions to NPS.

5. **Tax-saving Fixed Deposits:**
- Fixed deposits with a lock-in period of 5 years are eligible for deduction under Section 80C.

6. **Sukanya Samriddhi Yojana:**
- Contributions to the Sukanya Samriddhi Account for a girl child are eligible for deduction under Section 80C.

7. **Voluntary Provident Fund (VPF):**
- Contributions to the VPF, which is an extension of the EPF, are eligible for deduction under Section 80C.

8. **Investing in Real Estate:**
- Investing in real estate and claiming deductions on home loan interest and principal repayment can help save tax.

9. **Rajiv Gandhi Equity Savings Scheme (RGESS):**
- Investments in RGESS are eligible for deduction under Section 80CCG, though this is subject to certain conditions.

10. **Leave Travel Allowance (LTA):**
- LTA exemption can be claimed for travel expenses incurred during leave, subject to certain conditions.

11. **Perquisites and Allowances:**
- Utilize tax-free perquisites and allowances offered by employers, such as food coupons, transport allowance, and medical reimbursements.

### **Specific to the Manufacturing Business in Punjab:**

1. **Section 35AD:**
- Deduction for capital expenditure incurred in setting up and operating a manufacturing business.

2. **Section 80-IA:**
- Deduction for profits and gains from industrial undertakings or enterprises engaged in infrastructure development.

3. **Export Incentives:**
- Various export incentives and deductions are available under the Foreign Trade Policy and Income Tax Act for exporters.

4. **Section 80JJA:**
- Deduction for profits and gains from business of collecting and processing biodegradable waste.

For personalized tax planning, especially considering the unique aspects of your father's income and medical expenses, consulting with a tax professional or financial advisor is recommended. They can help tailor a plan specific to your needs and ensure compliance with the latest tax laws and regulations.