The Income Tax Act provides provisions for assessing tax deductions and tax discounts. These refunds are allowed to be deducted from taxes charged on personal income. Some of the provisions that allow income tax exemption include:
Section 80C: Investments and Fees in Certain Instruments
Section 80C provides payments Income Tax India to taxpayers up to Rs. 1,00,000 tax-free income per year if invested in the following vehicles.
Life insurance premium or ULIP
Public Provident Fund (PPF) – Up to Rs. 70,000 per year
Contributions to the Provident Fund (PF)
Repaying the principal of the home loan
Equity Linked Savings Scheme (ELSS) of Mutual Fund Companies
National Savings Certificate (KorPorSor.)
Tax-saving fixed deposits with banks
Tuition fees for children
U/s 88B: Senior Citizen Rebate
This tax refund applies to resident individuals over the age of 65.
Rs 15000 cashback under this title Income tax is allowed regardless of income.
U/s 88C: Women’s Assessment Rebate
Refunds are offered for assessing resident women under the age of 65 under this section.
This provision allows a deduction of Rs 5,000, allowing any tax burden on women.
deducted from total income
Gross income refers to the income earned under different categories. in a given financial year Exemptions are permitted under this section with reference to parts of Chapter VI-A of the Income Tax Act. Income tax exemption must meet certain conditions.