Several people will beware while they are investing money in schemes like PPF, insurance, and ELSS helps them in saving tax payable under section 80C in India. Among these one of the important things you need to do is Income Tax Filing for yearly when you are going to take a loan or anything else. However, there are few expenditures that are allowed under Section 80C at the Act, 1961, that help to avoid tax, too. You need to know that if the person has incurred expenses in the year of financial, then they are eligible to declare a deduction of nearly Rs 1.5 lakh. Given some of such expenses-
According to the Income-tax Act, all tuition payments paid at the point of admission to school, university, college, or any educational institutions which are eligible for a reduction. You can note that some fees paid to the studies continued for full time may require a deduction. It includes fees paid to the school activity, nursery classes, or pre-nursery. Along with those, if there is any payment for development fees and donations, a similar nature may be considered as specific tuition fees.
Home Loan repayment:
Under these Section 80C, the owner of the house can get support from (EMI) equated monthly installments. EMI has interest and components- principal. The number of principal can be deduced from specific total gross income tax under these Section 80C where the net payable income will be calculated. Simultaneously with the people, HUFs can claim a deduction.
For that purpose, people can get a certificate of home loan either from a particular bank’s branch either from online. It determines how that particular person gets total EMI to pay for a specific year. One important point to note is that, while the primary years of home loan repayment, that interesting part of EMI may be more compared to the principal part. In the later years, however, the principal repayment component of the EMI becomes much larger. Interest on home loan payments are claimed to be a deduction from total gross under Section 24 as well as Section 80EE in certain conditions.
Payments for the purchase or construction of house property:
According to the Income-tax Act, registration fee, stamp duty, and many other expenses that had incurred for purchasing the home qualify for some deduction from total gross in the financial year during these expenses become incurred, however, this may be seen that it may not involve whether a person has taken a home loan or not to get the property.
Payment to DDA for the purchase of house:
If the person buys a house from one of the development authorities like Delhi Development Authority (DDA), furthermore paying the installment to that DDA, then an amount paid for the principal repayment may be claimed as reduction under Section 80C act of Income-tax India.
Taxpayers must know and understand about specific provisions where it could keep on income tax; but, their purpose of these tax savings need to be made without affecting their economic life. For example, one will not be getting a home loan due to their tax savings, which are claimed. Alternatively, those who need a home and can take a home loan that will consider steps to reduce the loan repayment trouble with these tax benefits. So, utilize available tax reductions where needed and overcome your income tax burden. Also, know more about Income Tax Return Filing which is necessary for every tax payemnts. Suggest your friends and family members about tax payments for various purposes that they will be going on paying.