Do you know the various options to save your tax? There are various Income Tax Exemption options fully approved by the Government of India.
Indian citizens have the option for getting exemptions upto Rs.1 lakh for investments like general insurance, ULIPS, mutual funds or provident fund (Section 80(c)).
In additional to this Rs.1 lakh, medical insurance amount paid for the family is also exempted.(Section 80(d)).
For year 2010, 2011 investments in infra structure bonds upto Rs.20000 are tax exempted and this is apart from the Rs.1 lakh normal tax exemptions.
The above stated are as investments.
Apart from this, there are exemptions approved by government of India that can be claimed by submitting proofs. The major exceptions are the following.
- HRA expenses – (Exemption depends on factors like Basic salary, location,HRA given by company etc)
- Medical expenses(15000/ per year)
- Conveyance expenses(9600 per year)
- Leave travel expenses.