Tax Savings
Income from various sources such as salary, business profits, rental income, interest, and capital gains is subject to taxation under the Income Tax Act. However, Indian taxpayers can reduce their tax liability by investing in eligible schemes and claiming deductions under various sections of the Income Tax Act.
Section 80C reduces tax liabilities by allowing deductions from total taxable income in a financial year if your investments come under the following schemes and expenses:
| Eligible Schemes / Expenses | Description |
|---|---|
| Equity Linked Savings Scheme (ELSS) | Mutual funds with a 3-year lock-in and market-linked returns |
| 5-Year Tax-Saving Fixed Deposit | FD with a 5-year lock-in and fixed interest |
| Principal Repayment on Home Loan | EMI principal component of a home loan qualifies for deduction |
