Income Tax Exemption Rules In India gives options to tax payers in the form Exemptions and Investments. As a taxpayer, you have all rights to use these options to get relief if your tax amount is turning as a burden.
- House Rent Allowance – As per HRA rules
- Conveyance Allowance – Max Rs.800 per month
- Leave Travel Allowance – 2 times in 4 years
- Medical Reimbursement – Max 15000/- per annum
Investments which can be claimed for Deduction from Income :
- Section 80C – Max Limit Rs.1 Lakh
- Provident Fund (including Public PF)
- Fixed Deposits (>= 5 Yrs)
- Insurance / Pension Plan
- Unit Linked Insurance (ULIP)
- Equity Linked Savings Scheme (ELSS)
- Tuition fees of children
- Repayment of principal on housing loan.
2.Section u/s 80CCF- Infra structure bonds of Rs.20000 per annum
3. Medical premiums for Self – Rs. 15000 per annum
4.Medical premiums for Parents – Rs. 20000 per annum
Additional : Interest of Housing Loan –
Principal will qualify under Section 80C among other investment avenues. The interest component provides a separate deduction and has a limit of Rs. 1.5 lakh for a self-occupied property.