How do I Reduce my Taxable Income?

How Can I Lower My Taxable Income?

• Contributions to Employee Provident Fund (EPF) or Public Provident Fund (PPF) are eligible for deductions under Section 80C of the Income Tax Act. Both employee and employer contributions to EPF are eligible for deduction.
• ELSS mutual funds offer tax benefits under Section 80C. Investments up to ₹1.5 lakh in ELSS are eligible for deduction.
• Contributions to NPS qualify for deduction under Section 80CCD(1), with an additional deduction of up to ₹50,000 under Section 80CCD(1B). This allows for a total deduction of up to ₹2 lakh per annum.
• Premiums paid towards life insurance policies for self, spouse, or children are eligible for deduction under Section 80C. Premiums paid for health insurance policies for self, spouse, children, and parents are eligible for deduction under Section 80D.
• Interest paid on education loans for higher education qualifies for deduction under Section 80E.
• Repayment of home loan principal amount and interest paid on home loan are eligible for deductions under Sections 80C and 24(b) respectively.
• Donations made to eligible charitable institutions or funds are eligible for deduction under Section 80G. House Rent Allowance (HRA) received from your employer can be partially exempted if you pay rent and do not own a house.
• Medical expenses for specific medical treatments and specified diseases for self or dependent family members are eligible for deduction under Section 80DDB.
• Interest earned on savings account deposits up to ₹10,000 is eligible for deduction under Section 80TTA. Additional deduction of up to ₹1.5 lakh can be claimed for interest paid on home loans for the purchase of affordable housing under Section 80 EEA.