Business News Desk, There are several deductions available under various sections of income tax which help in reducing the taxable income. Most people try to make the most of the Section 80C limit by investing in popular schemes like Public Provident Fund (PPF), National Pension System (NPS) and Equity Linked Savings Scheme (ELSS).
Contribution made to political parties/charitable organizations
If you donate to a political party or charitable organization, you can avail tax exemption. Legal deduction can be claimed on any donation made to approved political parties/charitable organizations as per section 80GGC of the Income Tax Act.
Students who have taken an education loan for studies get tax benefit under section 80E on the interest paid on the loan. However, the deduction is provided only for the interest portion of the EMI. There is no tax benefit for the principal portion of the EMI.
Deduction under section 80GG can be claimed if taxpayers do not get House Rent Allowance (HRA) as part of their salary or if they are self-employed individuals. To avail this deduction, they have to submit Form 10BA. They can claim a deduction of up to Rs 60,000 under this section.