Tax exemptions that you may be unaware of

The Indian taxation structure have undergone a major transformation, thanks to the government initiatives, but there are certain rules and regulations that has brought together a unified change without even a common man knowing. Here, in this article, we bring together the list of exemptions that you are entitled or not entitled to:

Perks for senior citizen-Senior Citizen with taxable income up to 5 lakh can seek for TDS tax relief on bank interest- The government has launched an initiative, under which the senior citizens with a taxable income of upto Rs 5 lakh can claim tax exemption in TDS, as per the notification issued by CBDT. Earlier the limit for seeking tax deduction was Rs 2.5 lakhs. The CBDT has recently amended this law and the government has proposed the same in 2019-20 budget.

Is LIC amount taxable- The premium amount received at the time of maturity is not taxable, except if the policy was issued before 1 April 2003 and 31st March 2012 and the premium paid exceeded 20% of the insurance cover. If you are unaware of such tax breaks or the benefits, you can join the accounting and taxation courses in Navi Mumbai.

Tax rebate for the individuals who earn up-to Rs 5 lakh- The Income Tax department in its recent amendment has given a tax rebate of Rs 12,500 to people who are having an annual income of Rs 5 lakh from the starting of the next fiscal. For people who are earning more than Rs 5 lakhs, the old tax rate will continue to evolve, however people having an income of Rs 6.5 lakh can claim tax deduction by investing 1.5 lakh in specified investments mentioned under the section 80 C like PPF, General Provident Fund, and insurance. About three crores tax payers will get benefited from this scheme. The tally course in Pune will enlighten more knowledge about this.

ELSS funds are tax eligible- The equity linked savings scheme is eligible under the section 80 C for a tax deduction. The data shows that more than 31 schemes have been launched in the market with more than three years of record time that can help the income tax payers to save Rs 46,800 income tax outgo in the financial year. These schemes allow investment rebate upto Rs 1.5 lakh, but these funds come with lock in period of 3 years, which means you won’t be able to redeem the investments within this period only.

Hike in standard deduction- in its latest budget the government hiked the standard deduction for both individuals and pensioners, the additional increase in deduction of upto Rs 10,00 can help the individuals to reduce their taxable income.

No additional tax on the notional property- In order to revive the real estate sector, the government in its budget has disapproved the tax on the notional property even if the owner has more than one self-occupied property.

In the end, we would like to conclude that all these deductions and claim will help you to do better tax planning.