Being a citizen of India, we are entitled to several privileges. These privileges allow us to live life to the fullest and free. But, along with these, there are also a number of responsibilities and duties we need to fulfill towards the country. As you must be aware, after you become 18 years of age, you are supposed to cast your vote being a responsible citizen of the nation. Along with that, it is also important to start paying your taxes once you start earning money.
There are different taxes imposed on the citizens of the country by the government. These extra taxes, however necessary they may be, start taking the better part of one’s income, and very soon one realizes that they do not have sufficient savings to support their lifestyle. In order to help you manage your financials better, there are many Income Tax saving schemes available in the market. Most of these plans allow you to derive the benefits of tax deduction by making an investment that can be utilized at a later stage. The money, instead of getting deducted in the form of taxes, now get invested or is saved instead.
Under the Section 80 C of the Income Tax Act, there is a provision using which an individual can save on their taxes. If one is able to use all these sections efficiently, then they can make close Rs. 10.75 Lakhs Income tax free. A detailed list of all the different sections under which you can avail these tax benefits, and the maximum amount it is possible to save in each of them have been given below:
- 80 C /80 CCC / 80 CCD- Under this section, you can save up to Rs. 1,50,000 max as tax exemption. Investments in EPF, PPF, FD, Pension Plans, Life Insurance such as Aegon Life iMaximize Insurance Plan, etc. are taken under this section.
- 80 E- Under this section, you can avail tax exemption on the interest paid on education loans.
- 80 CCG- This section allows you to avail a 50% exemption if you invest your money in RGESS approved stocks and mutual funds.
- 80 D- The premium paid towards medical insurance for self and parents comes under this section.