Income tax deductions / exemptions for Individuals.

As we approach the conclusion of the financial year, there are several important matters to address, one of which involves managing your investments and tax planning. As the well-known saying goes, "A penny saved is a penny earned." Tax planning is essential for maximizing savings and income. The income tax regulations offer deductions for various investments, savings, and expenses incurred by taxpayers during the fiscal year. Let's explore some strategies to help you minimize your tax liability. Let's gather all of those here, along with a few additional options.

Are rent payments considered as expenses? What about interest payments or insurance premiums? Well even though these are expenses, these can still aid in tax savings. If you're a salaried individual, you can claim rent paid as an exemption from your salary income. The House Rent Allowance (HRA) exemption is applicable if it's part of your salary structure. Ensure to check for this allowance in your salary, and if present, keep all relevant documents such as rent agreements and payment receipts handy, as they facilitate significant tax savings.

Similarly, if you've acquired a property through a home loan, you can claim deductions under the head of Income from House Property. Notably, principal repayment qualifies as a deduction under Section 80C. Deductions under Section 80C and Section 80D are also applicable for life insurance and medical insurance premiums, respectively.

To simplify, here's a table outlining common expenses/investments eligible for deduction from your taxable income: