Tax Savings Meaning | What is Tax Savings Scheme?

What is Tax Savings?

A tax saving is a process for a reduction in the amount of taxes paid by an individual, business, or other taxpayers. This process will result in a reduction of income tax withholding after filing an income tax return.

Income like salaried income, income from a business, and income from investments are taxable. Tax savings often result from credits, deductions, and exemptions. There are sections that can reduce tax liabilities.

Section 80C allows deductions from total taxable income during a financial year if your investments come under some scheme such as PPF, NPS, Home loan repayment, tuition fees, etc.
Section 80CCD stipulates deductions for investment in NPS.
Section D allows a deduction up to Rs. 1 Lack for insurance premium for self, children, and spouse.
Section 80DD deduction under if you’ve got a dependent who is differently-abled and entirely dependent on you for maintenance.
Section 80E helps for tax savings on education loan repayment.
Section 80EE is considered as a deduction on home equity credit repayments for the first-time buyer.
Section 80G is for deductions made to Income tax department-approved charitable organizations.
Section 80GG is considered for deductions for HRA received as a part of the salary.
Section 80TTA is used to say a deduction of Rs. 10,000 on your interest income. Section 80DDB is used to claim tax deductions on medical expenses incurred to treat specific ailments.
Section 80U allows individuals who are certified to be at least 40% disabled to claim tax benefits.
Section 80GGC allows individuals to say tax deductions on contributions to political parties registered under Section 29A of the Representation of the People Act.