Saturday, April 25, 2009

Useful Tax Tips

Some useful tax tips for the tax payers in this post. We will try to keep this post updated regularly so that every year, people can make use of this post.

1. The annual deduction for medical insurance has been raised up to Rs. 35,000.
2. Loan repayment for self-occupied house gets you deduction up to Rs. 2.5 Lakhs. (1.5 Lakhs for interest repayment and 1 Lakh for principal repayment under section 80C)
3. Stamp duty and registration fees paid towards a house is deductible under section 80C.
4. If eligible, you can get deduction for rent up to Rs. 24,000 under section 80GG.
5. You can claim HRA exemption by living in your spouse's/father's house and paying rent to them.
6. You can save taxes by investing up to Rs. 1 lakh in a pension plan.
7. Life insurance premium entitles you to a deduction up to Rs. 1 lakh.
8. You can save taxes by investing Rs. 1 lakh in the equity market via ELSS.
9. Interest paid on an education loan is deductible without limit.
10. School tuition fees paid for your kids' education is deductible under section 80C.

Please leave your comments on the post if you are aware of any other tax benefits for the current year.


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