1). Interest Income of Savings Account
Interest income of Savings Account is not taxable upto Rs. 10,000
2). PPF/EPF
Interest earned from PPF and EPF is fully tax exempted.
3). Educational Scholarship
Amount received as a scholarship for education is not taxable. Be it scholarship by government or private trust.
4). Profits on Selling Shares or Equity Mutual funds
The profits which you earn on selling shares or mutual funds is 100% non taxable only if you have kept the share or funds for minimum 1 year.
5). Gifts in Marriage
Gifts received in marriage is also 100% non taxable.
6). Donations
Section 80G – Donations to specified funds or charitable institutions. You need to retain the stamped receipts of the donations and make sure the charitable organization is registered.
7). Agricultural Income
The income generated from agricultural land is tax free.
8). Health Insurance Section 80D
A premium upto Rs 25000 can be clamied for a deduction under Section 80D. In case of senior citizen this limit goes upto Rs 30000.
9). Interest paid on Education Loan
Interest paid on educational loan is also non taxable. There is no limit for this.
10). Savings option under Section 80C
Section 80C offers a maximum deduction of up to Rs. 1,50,000
- Public Provident Fund
- ELSS
- Life Insurance Premium
- National Savings Certificate
- Equity Linked Savings Scheme
- Principal Amount Repaid on Home Loan
- 5 year fixed deposits with banks and post office
- Tuition fees paid for children’s education, up to a maximum of 2 children
11). Home Loan
Use your home loan efficiently to save more tax. There are three ways to get income tax deduction on your home loan(s).
- The principal amount
re-paid in the current financial year is included under section 80C, offering a deduction up to Rs. 1,50,000. - The interest portion offers a deduction up to Rs. 2,00,000 separately under section 24.
- Benefit on interest on home loan for First Time Buyers – Rs. 50,000 under section 80EE
- If you are living in the home on which you took
first home loan, you can get another loan for the second house. There is no limit on income tax deduction on the interest payment ofsecond home loan. Very few people are aware of this benefit of tax saving onsecond home loan.