Expenses That Can Help You to Save Tax under Section 80C
Tax can saved under the section 80C through the investment in the public provident fund, equity linked saving scheme or in the insurance. You should also know that there are certain expenses which can save the tax under the section of 80C by the income tax act .If you are doing any expenses which is mentioned below in the current financial period, then you can claim for the maximum deduction of amount about Rs.1.5 lakhs.
1. Tuition fees of children
Any one knows that fees paying to the tuition for your children can be claimed for the tax reduction? According to the act of income tax the amount paying for the tuition fees for school, colleges, university and any other educational institution is completely eligible for the deduction of tax. Studies carried for full time only can be claimed under this act. This tax deduction is also suitable for the fees paid in the nursery school and for play school. And the important thing for the tax deduction is the institute should be located in the India which may be run by a government or private one. Click the website here to read more about the income tax act.
2. Home loan principal repayment
For the loan of house, the buyer can get relief as they can pay the equated monthly installments (EMI).The EMI consists of two components called principal and the interest. The principal amount you have paid in the financial year of April to march can be claimed under the section 80C for the taxable income. Loan certificate from the lending bank shows total amount of EMI paid in one year for the repayment of borrowed amount. House should not be sold within the period of five years otherwise the tax deduction claimed will be added again to the income.
3. Certain payments for the buying of residential house property
There are certain charges you have to pay apart from the amount of the house. Stamp duty, fees for the registration and other expenses such as statuary expenses incurred during buying of house can be claimed for the deduction of tax.
4. Payment to the development authority
When you have purchased the house from the scheme of installment under the Delhi development authority and the installment paid to this authority, then this principal amount can be claimed under the section 80C.