Sections Under Income Tax where You can SAVE

As the last date of filing income tax is approaching, still many of us are not aware of deductions which we can claim. Most of us know about only the popular deductions, here are few which are either introduced this dear or are not very popular:

1. Section 80TTA: Interest on savings bank account will now be exempt up to Rs. 10,000 in a year.But income generated from the savings bank account should first be declared and then the exemption can be claimed.

2. Section QQB: For authors of certain specified books, royalty income or copyright fees up to Rs. 3 lakh will be available for deduction. The books can be work of art, literature or scientific nature. The author needs to furnish a certificate in prescribed format.

3. Section 80RRB: Royalty income on patents will also be available for deduction up to Rs. 3 lakh. Patents should have been registered on or after 1st April, 2003

4. Section 80CCD(1): Section 80CCD is now divided into two parts. This part is concerned with employee contribution under notified pension scheme by Central Government or any other employer, is deductible up to 10 per cent of salary, subject to limit of 1 lakh under Section 80C.

5. Section 80CCD(2): This part is concerned with employer contribution under notified pension scheme by Central Government or any other employer is deductible up to 10 per cent of salary, without any upper limit.

Apart from these deductions, an additional deduction of Rs. 1 lakh (apart from existing 1.5 lakh) on the interest amount would be available for first time home buyers with home loan up to Rs. 25 lakh. This will be available for FY 2013-14 (AY 2014-15)

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