Chapter VI-A Exemptions for tax savings as per Budget 2021
Today, in this article we are going
to discuss all the exceptions of Chapter VI-A. This will clear up your doubts
regarding the exemption under Section VI-A. This will be helpful for many of
you because if you want to save tax on your total salary, it is important to
have an idea about discounts.
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What is Chapter VI-A?
According to the Income-tax Act,
Chapter VI includes various sub-sections of Section 80 of the Income-tax Act
which allows an assessor to claim a deduction from the total income for various
tax-saving transactions, approved expenses, and grants. Let's do it.
The following sections are found in
Chapter VI-A of the Income Tax Act:
80C:
The maximum used and maximum
exemption limits of 80C include life insurance premiums, late annuities, PF
grants, subscriptions to some equity shares or debentures, and much more. With
Section 80cc and Section 80ccd, the exemption limit is Rs. 1.5 lakhs (1).
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Exemption in case of contribution
to the fixed pension fund. Exemption limit with Section 80C and Section 80CCD
(1) is Rs 1.5 lakh.
Exemption for contribution to the
Central Government Pension Scheme - In the case of an employee, 10 % salary and
in any other case, 20 % of his total income in any financial year will be
tax-free. The combined limit of 60C and 80cc together is Rs 1.5 lakh.
Deduction up to Rs 50,000 for
contribution to Central Government Pension Scheme (NPS)
In case of contribution to the
pension scheme of the Central Government by the employer, the tax benefit is
given on 14 %t contribution by the employer, where the Central Government makes
such contribution and where any other employer makes this contribution, the tax benefit is given at 10%.
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80D:
In the case of health insurance
premium, the premium paid up to Rs 25,000 is eligible for an exemption for
persons other than senior citizens. For senior citizens, the limit is Rs 50,000
and the overall limit U / s 80D is Rs 1 lakh.
Decreases in maintenance, including
the treatment of a dependent person with a disability. The maximum discount
limit under this section is Rs 75,000.
Discount on expenses up to Rs. 40,000
for treatment of a specific disease from a neurologist, an oncologist,
urologist, a haematologist, immunologist, or such specialist
80E:
Exemption in case of interest on a loan is taken for higher education without any higher limit.
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80EE:
Exemption on interest up to Rs.
50,000 taken on residential home property
Exemption on interest up to Rs. 1.5
lakhs on loan taken for fixed house property (for affordable housing)
Exemption on interest on loans up
to Rs 1.5 lakh for buying an electric car.
80G:
Depending on the nature of the
grant, such as grants to specific funds, charities, etc., the limit varies from
50% of grants with a cap of 100% of
total grants, 50 % of total grants, or 10% of total income.
Amount of Exemption in case of rent
paid by salaried persons who do not get HRA benefit. The discount limit is Rs
5,000 per month or 25 % of the total income in one year, whichever is less.
80 GGA: Full waiver for specific
grants for scientific research or rural development U/s 80 GGA: Full waiver
for grants to political parties, such as non-cash grants.
80 TTA: Exemption amount up to
Rs.10,000 in case of interest on savings bank account in case of assessment
other than residential senior citizens.
80TTB: Exemption for interest on
deposits up to Rs. 50,000 in case of resident senior citizens.
80U: Exemption for persons with
disabilities. The maximum amount of exemption is Rs.1.5 Lakh for above 80%
disable employee and Rs.75,000/- for 50% to 80% disable employee
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