You are here: Home » Deductions

Deductions

Knowledge About Deductions And Availing Exemptions

Exemptions are one of the most important areas in tax planning as they form the base from where tax planning can be done in the best possible way. There are many ways by which assesses can save some amount by way of investment. Section 80CCE relates to investment in New Pension Scheme (NPS) which is a deduction in respect of contribution made by an employee as well as an employer on behalf of the employee. However, taken together the .....

Deductions in Respect of Royalty on Patents

The IT department has taken the benefit of deduction to another level. Deductions in respect royalties on patents are also provided these days. For the purpose of this section, ‘royalty’ in respect of a patent means consi9deration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head ‘Capital Gains’ or consideration for sale of product manufactured with the use of patented process or the .....

Deductions Which Are Tax Incentives!

The success of an economy lies in between sync of savings with investments in the right proportion and as we all know, no economy can implement this concept all by itself unless it has taken some major administrative steps towards accomplishment of such goals. India is a secular country where each and every individual has an urge for saving tax and for such purpose, they intent to invest in funds which allow them deduction over .....

10 Most Attractive Income Tax Deductions

The time of the year has come when all the individuals try and find ways to reduce their tax liabilities. They look forward to make investments in different securities and obtain exemptions or deductions in respect of their income. Here is al list of few deductions which is generally available to the assessee but he doesn’t take it into account while computing his tax liability. Deduction in respect of life insurance premia, deferred annuity, contributions .....

All You Wanted to Know About Deduction u/s 80C

The various budgets that have come by in the past have opened choices of various kinds of investment alternatives. When we invest in these we could save tax. The significant question would be what should be the field of investment that is to be chosen. It could be residential house property, medical insurance policy etc. If the house is ready for occupation then from that year itself investment in residential house property which is for .....

Tax Deduction on Education Loan

Yes, it is true that you can get tax deduction on education loan or student loan. So why you lost your tax benefit, if it is available! As per section 80E of the Income Tax Act, an individual is entitled to a 100% deduction on the payment of interest on loan taken from any financial institution or any approved charitable institution. You can use these tax benefits to reduce the cost of your education loan/student .....

12 Things You Must Know Before Buy Health Insurance

Health Insurance (popularly known as Mediclaim) offers protection in case of unexpected medical emergencies. In case of a sudden illness or accident, the health insurance policy takes care of the hospitalization, medical and other costs incurred. So this is important for us to know some important things before buy a health insurance. You can also read basic of health insurance, if you don’t know much about it. Buy a basic health insurance plan, which is .....

Deduction on House Rent under section 80GG

The common question arises in the mind of assesee received salary is “I am not receiving any house rent allowance (HRA) but I am paying house rent for Rs. 5,000 per month. Can I allowed for any deduction from my salary income?” Yes, you can get deduction on house rent paid even you are not receiving any HRA u/s 80GG subject to some conditions. In this article we will discuss only about deduction under section .....

Family Members Investments Qualified Under Section 80C

There has always been misunderstanding in the mind of us toward claiming the deduction under section 80c for investment made on behalf of the family members. In this article, we will talk about all circumstances, where an individual can get the benefit of deduction u/s 80C for payment on behalf of his/her family members. Every person should plan his investments and plan his taxes. Section 80C of Income tax is one of the part for tax planning. This article seeks to .....

Cash Payment of LIP is Allowed for Deduction u/s 80C

Most of the subscribers of etaxindia.org inquired countless times to me that whether cash payment of life insurance premium to Life Insurance corporation (LIC)/ other life insurance companies is allowed for deduction u/s 80C or not. So I want to clear that there is no provision under the income tax act to disallow any cash payment of LIP to LIC. Payment of LIP to LIC whether in cash or in cheque is allowed under section .....

Calculation of House Rent Allowance (HRA) Exemption

Allowance is a fixed monetary amount paid by the employer to the employee, Whether personal or for the performance of his duties. These allowances generally taxable unless a specific deduction/exemption is provided by law. So in this article we will discuss about House Rent Allowance broadly. So you can understand and calculate it very easily. Please read complete article including the notes given at the end of the article. House Rent Allowance (HRA) is give .....

Minimum Holding Time Limit for Claiming Deduction u/s 80C of Some Investments

In respect of the some investments/deposits eligible for deduction under section 80C, in some cases , the law provides a minimum period of holding for claiming deduction u/s 80C otherwise it will be taxable. Such cases are given below- Time Limit for qualifying deduction u/s 80C Unit- Linked insurance plan (ULIP) – 5 years Life Insurance Premium – 2 years Cost of Purchase/ Construction of a residential House property including repayment of Loan – 5 .....

Tuition Fees Deduction u/s 80C on Education of Children

Tuition fees under income tax act is full time education of any two children in any university, college, school or other educational institution, subject to over-all limit of tax deduction under section 80C. Deduction for tuition Fees is valid for Rs.100000. The total amount of deduction under section 80C , 80CCC and 80CCD shall not exceed Rs. 1,00,000/-. Payment allowed for deduction u/s 80C on Tuition Fees Fees paid to regular educational institution irrespective of .....

Deduction u/s 80C, 80CCC, 80CCD, 80CCE, 80D, 80DD, 80DDB, 80E, 80G etc.

The following Table all about deduction from income under all section 80A/AB/AC, 80c,80CCC, 80CCD, 80CCE, 80D,80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGB, 80GGC, 80-IA, 80IAB,80IB, 80IC, 80ID, 80IE, 80JJA, 80JJAA, 80LA, 80P, 80QQB, 80RRB, 80U. One can easily find the provision of any above deduction like for whom the particular deduction is allowed and for what quantum of deduction is allowed. 80DDB Sections Particulars Assessee to whom allowed Quantum of deduction 80A/AB/AC Basic rules of .....