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FAQ > What are the tax benefits still available to an individual?
What are the tax benefits still available to an individual?
Pension plans and deferred annuity schemes qualify for a deduction of up to Rs 10,000 in each financial year, under section 80CCC. Section 80D offers a rebate of up to Rs 10,000 on premium paid for medical insurance, which moves up to Rs 15,000 for senior citizens.
Then there is section 80E which offers a rebate on repayment of loans for higher education for an aggregate repayment of principal and interest up to a maximum of Rs 40,000. Section 80G and 80GGA allow an individual to donate money to specified charitable institutions and funds, such as the Prime Minister's National Relief Fund, to save tax. While some trusts qualify for a 100 per cent deduction, others offer a deduction of 50 per cent.
As per section 54EC, an individual can park his long-term gains in Nabard, National Highway Authority of India (NHAI) or the Rural Electrification Corporation (REC) to get an exemption to the extent of gains invested. And 54ED allows claiming an exemption, if the individual uses his gains from sale of shares or mutual funds to buy shares of specified capital issues by a public company. And lastly, section 24(2) of the Income Tax Act, 1961, grants an income-tax deduction for interest payment on housing loans of up to Rs 1.5 lakh.