Tax Saving – Check out details of few deducations

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House Rent Allowance

Applicable If

— A portion of your salary is marked as House Rent Allowance or HRA
— You are paying rent of your house
Conditions

–The house should not be in your kids, spouses or your own name.

Max Deductions

–The total amount of rent paid or the amount earmarked as House Rent Allowance in your payslip, whichever is less, will be deducted from your taxable income.

Limitations

–It should not be more than 50 percent of salary for those living in metro cities or 40 percent of salary for others

–If you are paying more than Rs.5000 per month as house rent, you will have to submit a lease document

–Rent receipts should have a revenue stamp.

Education Loans

Applicable If

–You have taken an Education Loan from any bank

Conditions

–The loan should be in your kids, spouses or your own name.

Max Deductions

–Only principle repayment can be exempt

Limitations

–The interest that you pay will be tax deductable.

 

Dividend Income

According to Income Tax Act,1961 there is a provision benefit in Income Tax if assessee has an income as a dividend on investment in any of the following:

–Shares
–Mutual Funds
–Unit of UTI

This dividend can be given by any company or co-operative society.


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