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Every taxpayer is entitled to reduce his tax liability by taking benefits of various deductions available under the Income Tax Act, 1961. Therefore he should plan his investments and make decisions in such a manner that he may get the maximum benefit of various deductions available under the Income Tax Act, 1961.

Most of the individuals with an effort to reduce their tax outgo, tries to maximise their tax investments under section 80C, as still other tax saving tools are not so popular or the individuals are not fully aware of other tax tools. The following lists emphasis importance of other tax saving tools other than (other 80C):

Section 80D: Premium paid towards Medical insurance of himself, spouse & children and also dependent parents is eligible amount under this section subject to a maximum of Rs. 15,000 and Rs. 20,000 in case insurance cover is taken for senior citizen.

Section 80DD: Deduction of Rs. 50,000 in respect of maintenance including medical treatment of a dependent who is a person with disability is allowed as deduction irrespective of the amount incurred or deposited.
The above deduction can also be claimed if you pay premiums towards buying certain insurance policies for them. For severe disability, the amount of deduction available is Rs 100,000.

Section 80DDB: Amount paid for medical treatment of some specified diseases for self or dependent relative or member of HUF, can be claimed under this section. The amount of deduction is Rs. 40,000 or the amount actually paid, whichever is low.

Section 80E: Deduction is available for payment of interest on a loan taken for higher education from any financial institution or an approved charitable institution for self or relatives.
Entire payment of interest is deductible and the deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.

Section 80G: Deduction in respect of donations to certain funds, charitable institutions, etc. qualify for tax deduction under section 80G but is subject to certain ceiling limits.

Section 80GG: Deductions in respect of rents paid can be claimed if you are not receiving any HRA from your employer. This deduction will be denied if the you or your spouse or minor child owns a residential accommodation in the location where you resides or perform your office duties. The least of the following could be claimed under Section 80GG.
• 25% of the total income or,
• Rs 2,000 per month or,
• Excess of rent paid over 10% of total income

We at Shining Stars: A Group Of Professionals have the expertise to handle most complicated taxation issues. We request you to please contact us immediately, for any queries.

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