What are different sections for tax exemption?
What are different sections for tax exemption?
Section 80
| Sections | What they deal in | Exemption limit |
|---|---|---|
| 80TTA | Saving account interest | ₹10,000 |
| 80U | Handicapped tax-payers can claim this deduction | ₹75,000 (fixed). For severe disabilities ₹1.25 lakhs (fixed) |
| 80RRB | Royalty or patent income | Up to ₹3 lakhs |
What are different sections of income tax?
Section 80 Deduction Table
| Section | Deduction on |
|---|---|
| 80CCD(2) | Employer’s contribution to NPS account |
| 80CCD(1B) | Additional contribution to NPS |
| 80TTA(1) | Interest Income from Savings account |
| 80TTB | Exemption of interest from banks, post office, etc. Applicable only to senior citizens |
How many types of income tax rebates are there?
Note: The combined income tax rebate in India, which can be availed under sections 80C, 80CCC, and 80CCD (1) is capped at Rs. 1, 50,000. Taxpayers can also avail an addition income tax rebate of Rs. 50, 000 under section 80CCD (1B) subject to self-contribution or deposit to their NPS account or Atal Pension Yojana.
Which section is for rebate?
Section 87A
Section 87A was introduced in Finance Act 2003 which was changed from time to time. Presently an individual tax payer, who is resident of India for income tax purpose, is entitled to claim tax rebate up to Rs. 12,500 against his tax liability if your income does not exceed ₹5 lakh.
How much can I claim for tax rebate?
Note- The amount of rebate should not exceed the amount of the income tax calculated before the Deduction on the total income of the individuals, which they will be charged for the assessment year. An individual can claim a deduction up to INR 1.5 lakh of the total income under Section 80C.
Is there a tax rebate under Section 80C?
Rebate under section 80C is only available for HUF and individuals. Apart from 80C, there are other options available under the income tax act such as 80CCC, 80CCCD and 80CCE. You can save tax in any of these sections, however section 80C can be the best option to claim the tax deduction.
Who is eligible for tax rebate under Sec 87A?
Section 87A of the income tax act, 1961 was launched to give relief to the taxpayers who fall under the 10 percent tax slab. If a person whose total net income does not cross INR 5 lakh can claim the tax rebate under section 87A of the income tax act.
What is the income tax rebate in India?
Income tax rebate is a word that is employed in various senses, all of which signify a reduction in tax liability. On the one hand, the term has gained popularity after the recent provisions of Section 87A of the Income Tax act in India, which allow for a tax sop of up to Rs.12,500 for persons with gross taxable incomes not exceeding Rs.5 lakh.