"Maximize Savings: Top Tax Deductions Explained!"

The article outlines key tax deductions available under the Indian Income Tax Act, including the Standard Deduction, Section 80C for investments, Section 80D for health insurance, and other provisions like home loan interest, education loans, and charitable donations, helping taxpayers reduce their taxable income effectively.


Tax Deduction Description
Standard Deduction
The standard deduction is a flat amount that can be deducted from a salaried employee's taxable income. Currently, it is ₹50,000 per year.
Section 80C
Allows deductions up to ₹1,50,000 for investments in specified instruments like Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificate (NSC), Life Insurance Premium, and more.
Section 80D
Permits deductions for health insurance premiums paid for self, spouse, children, and parents. The maximum deduction allowed is ₹25,000 for self and family, and an additional ₹50,000 for senior citizen parents.
Section 10(14) - Allowances
Various allowances such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and others are partially or fully exempt from tax depending on eligibility criteria and conditions.
Section 80TTA
Allows deductions up to ₹10,000 on interest earned from savings accounts held in banks, post offices, or cooperative societies.
Section 24(b) - Home Loan Interest
Permits deduction of up to ₹2,00,000 on interest paid on a home loan for a self-occupied property. For let-out properties, there is no upper limit but conditions apply.
Section 80G
Provides deductions for donations made to specified relief funds and charitable institutions. The deduction amount depends on the type of organization and can be 50% or 100% of the donation.
Section 80E
Allows deduction on interest paid on an education loan taken for higher studies. There is no maximum limit on the deduction, but it is available for a maximum of 8 years.
Section 80EE
Provides an additional deduction of ₹50,000 on home loan interest for first-time home buyers, subject to specified conditions.
Professional Tax
Professional tax paid by an employee to the state government is allowed as a deduction under Section 16 of the Income Tax Act.


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