Tax deductions are a smart way to reduce your tax liability—but only if used correctly. Many people don’t know about all available deductions or claim them incorrectly. Here are some legal and effective ways to make the most of your deductions.
Section 80C – The Most Common Deduction
You can claim up to ₹1.5 lakh under Section 80C. This includes LIC premiums, EPF, PPF, ELSS, and home loan principal repayments.
Section 80D – Medical Insurance
You can claim up to ₹25,000 (₹50,000 for senior citizens) for health insurance premiums. In today’s world, this is both a tax benefit and a necessity.
House Rent Allowance (HRA)
If you’re living in a rented house, you can claim HRA benefits. Just keep your rent receipts and landlord’s PAN handy.
Education Loan (Section 80E)
You can claim deductions on the interest paid on education loans for yourself or your children. This benefit can be availed for up to 8 years.
Conclusion
With the right documentation and expert guidance, you can significantly lower your taxable income by using available deductions correctly and legally.
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