What is the maximum investment for tax exemption?
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What is the maximum investment for tax exemption?
As per this section, the investments made by the investor are eligible for tax exemption up to a maximum limit of Rs. 1, 50,000. Such investments include ELSS (Equity Linked Saving Scheme), Fixed Deposits, Life Insurance, Public Provident Fund, National Savings Scheme and Bonds.
What is the maximum deduction under Chapter VI A in salary?
Therefore, the aggregate deduction shall be a maximum of Rs. 1,00,000. Deduction upto Rs. 5,000 shall be allowed in respect of payment made towards preventive health check-up of self, spouse, dependant children or dependant parents made during the previous year.
What is the 80C limit for 2019 20?
Rs 1.5 Lakh
Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2019-20. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
How can I avoid paying income tax legally in India?
Recommended ways of saving taxes under Sec 80C,80D and 80EE
- Make an investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
- Buy Medical Insurance, maximum deduction allowed is Rs.
- Claim deduction up to Rs 50,000 on Home Loan Interest under Section 80EE.
Does FD come under 80C?
A tax-saving fixed deposit (FD) account is a type of fixed deposit account that offers a tax deduction under Section 80C of the Income Tax Act, 1961. Any investor can claim a deduction of a maximum of Rs. 1.5 lakh per annum by investing in a tax-saving fixed deposit account. Interest earned is taxable.
What is Chapter VI A relief?
Chapter VI A of Income Tax Act contains various sub-sections of section 80 that allows an assessee to claim deductions from the gross total income on account of various tax-saving investments, permitted expenditures, donations etc. Such deductions allow an assessee to considerably reduce the tax payable.
What is deduction under Chapter VI A section?
The income tax law, allows the subtraction of some specified expenditures / investments from your gross total income, for the calculation of taxes. These deductions cannot exceed the gross total income. Read More Income Tax Deduction Guide.