Under section 80C of the Income Tax Act 1961, various tax-saving methods can be accessed in the permitted policies like PPF, ELSS and insurance. However, one can claim the subtraction in tax with the help of section 80C for some other little expenses.
One can take the deductions up to Rs 1.5 lakh or more if the expenses are incurred defined below the end of the financial year. There is no need for making any enrichment to leverage in section 80C if the expense is more than 1.5 lakh.
Tax will be deducted on every tuition fee paid to the schools, college or other institutions during registration or after that is entitled to a tax deduction from the total income. Their relaxation is only for the fees charged for the full-time study that consists of events in the playschool nursery and pre-nursery classes. The other contributions will not come under the tuition fees. The organization should have originated in India either government or private.
Concerning to every parent, this choice is narrowed to only two children and will be suitable for the person who inducted the expenditure. If there are 3 children then the parents can avail the tuition fees for one child. Whereas the other person can avail for another two children. While there will be no consideration for the education of the person and his spouse.
The comfort will be given to the person who takes the home loan. Both principal and interest will be paid by the person yearly. As a deduction, all people and Hindu Undivided Families (HUFs) can allege the whole principle returned in a financial year. One can access the loan certificate by taking it from the lender or can download it from the website. It contains the information for the home loan of a person.
Under section 24 and section 80EE below the norms, the interest payment can be alleged as a deduction only for the case of purchase of a new residence or renovating the house, but not on the modification or repairing of the house if the house is on rent or lease out by the landlord. The bought property has not to be sold within five years of buying for the end of the financial year, where there is the acquisition of ownership or deduction alleged in the previous year’s sale has relocated back to the income.
There are additional expenses excluding the price of housing. Stamp duty, processing fee and some other expenses are provoked for the purchase of the house which is entitled to the whole deduction in the income for the financial year where this expense is to be paid. But one should know that it does not have a relationship whether the person has taken a loan for the purchase of the residence or not and also an individual has to know that contributions given to become a part of a cooperative society are not admitted as a deduction.
Under section 80C of the Income-Tax Act, The amount paid for the consideration for the principal repayment has been entitled as a tax deduction if an individual purchased the property from a development corporation like Delhi Development Authority (DDA) on EMI.