Income Tax Exemption for the F.Y 2021-22 as per Budget 2021.
If you want to maintain existing or outdated tax discipline while filing your Income Tax Return (ITR) for F.Y 2021-22, you can avail several exemptions under the Income Tax Act, 1961. However, before doing so, be sure to Assume that you have compared the taxes payable under the old and new tax systems.
Initially, the old tax regime includes 4 basic income tax exemptions for the taxpayer to assume tax liability and earnings for the assessment year 2022-23. including Section 80C, the taxpayer has got a few more exemptions
Tax benefits under section 80C
There are some deposit and expenses U/s 80C of the Income Tax Act helps the taxpayer to low the tax payable. The Max. limit Rs 1.5 lakh. Such as 5 Years FD, LIC premiums, EPF, PPF, NSC, Equity Linked Savings Scheme. (ELSS).
U/s 80D exemption below 60 years of age Rs.25000/- and above 60 years of age Rs.50,000/-
National pension system tax savings
U/s 80 CCD (1):, both salary and self-employment can save tax by contributing to NPS. The Exemption Max Rs. 1,50,000/-U/s 80 CCD (1) of the Income Tax Act,
U/s 80CCD (1B): New Pension Scheme Max. Rs. 50,000/-
U/s 80CCD (2): Salary employees also get tax benefit on the employer's contribution to his NPS account. Contribution of ten per cent of the employer's salary (Basic Plus D.A.) may be claimed as exemption from taxable income under Section 80CCD (2) of the Income Tax Act, 1961.
When an education loan is repaid for higher education, the interest earned on an educational loan qualifies for an income tax deduction. As per the Income Tax Act,
