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Residential status under the Income Tax Act, 1961, determines how an individual’s income will be taxed in India. It affects whether global income or only Indian income becomes taxable, making it one of the most crucial steps before filing returns. As per Section 6 of the Act, residential status depends on the number of days an individual stays in India and their past presence over the preceding years. Accurate classification ensures compliance, helps avoid double taxation, an

Tax planning for FY 2024-25 revolves around using the revised income tax slabs, maximizing eligible deductions, and aligning investments with the latest Budget reforms. The government’s emphasis on a simplified new regime and increased standard deductions offers individuals more flexibility in optimizing their tax liability. By choosing the right mix of exemptions, salary structuring, and investments, taxpayers can significantly reduce their overall tax outgo while ensuring c

Taxpayers often stop at Section 80C when planning their savings, overlooking several other powerful deductions under the Income Tax Act, 1961. These lesser-known sections can substantially reduce tax liability while aligning financial goals with long-term benefits such as health coverage, education, and retirement planning. With the right mix of deductions and informed investment decisions, tax planning becomes a strategic advantage rather than a routine annual task. Table

Chapter VI-A of the Income Tax Act, 1961 provides a structured way for taxpayers to reduce their taxable income through specific deductions. These deductions cover investments, insurance premiums, medical expenses, donations, and interest income, offering comprehensive relief under the old tax regime. The updated list for FY 2024-25 includes sections ranging from 80C to 80U , with limits designed to encourage financial discipline and savings. TaxBuddy simplifies this proces

Education loans not only make higher studies possible but also bring valuable tax relief through Section 80E of the Income Tax Act, 1961. This section allows individuals to claim a deduction on the interest paid on education loans for themselves, their spouse, children, or wards. The benefit applies exclusively to the interest component and can be claimed for up to eight consecutive years. There is no upper limit on the deduction, which means every rupee of interest paid red

The  National Pension System  (NPS) provides a powerful opportunity to reduce taxable income while building long-term retirement wealth. Under Section 80CCD(1B) of the Income Tax Act, individuals can claim an additional deduction of up to ₹50,000 for contributions to their NPS Tier I account. This benefit comes on top of the ₹1.5 lakh deduction available under Section 80C and Section 80CCD(1), effectively allowing taxpayers to claim a total deduction of ₹2 lakh in a financial

Sections 80TTA and 80TTB of the Income Tax Act, 1961, help taxpayers save tax on interest income. While both provide relief, their eligibility criteria and deduction limits differ significantly. Section 80TTA  benefits resident individuals and HUFs under 60 years with up to ₹10,000 deduction on savings account interest, whereas Section 80TTB  is designed for senior citizens, offering deductions up to ₹50,000 on both savings and fixed deposit interest. Understanding the distin

Section 80E  of the Income Tax Act, 1961 allows individuals to claim deductions on the interest paid on education loans used for higher education in India or abroad. This provision benefits those funding their own or their dependents’ education, helping reduce taxable income and ease financial pressure. The deduction applies only to interest payments made to recognized financial institutions or approved charitable trusts and can be claimed for up to eight consecutive years. B

Section 80DDB  of the Income Tax Act, 1961 allows resident individuals and Hindu Undivided Families (HUFs) to claim tax deductions for expenses incurred on the medical treatment of certain critical illnesses. The provision ensures relief for families dealing with high medical costs by covering diseases like cancer, kidney failure, and neurological disorders. Only the actual out-of-pocket expenditure, after reducing insurance or employer reimbursements, qualifies for deduction

House Rent Allowance (HRA)  exemption and Section 80GG deduction are two separate tax benefits under the Indian Income Tax Act that reduce taxable income for individuals paying rent. While HRA exemption under Section 10(13A) is available only to salaried individuals receiving HRA as part of their salary, Section 80GG provides relief to those who pay rent but do not receive HRA, including self-employed individuals. Understanding the distinction between these two helps taxpayer