With a view to encourage savings and investments amongst the taxpayer, Income tax act allows various deductions from the taxable income under chapter VI A. The most common deduction is under section 80C, there are other deductions which are beneficial for the taxpayers to reduce their tax liability. The deduction helps in reducing the tax burden of taxpayer. Let us understand these deductions in detail:
Please note that, these deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD (2) which will be applicable for New Tax Regime as well.
