Budget 2023 | Here's a look at income tax sections that help you avail benefits

Income Tax Act of 1961 lays out various sections that dictate how individuals and entities should report their income and pay taxes. Understanding these sections is crucial for ensuring compliance with the law and availing of any tax benefits that may be available. Also, it makes sense to look at these ahead of Budget 2023 to keep track of any changes that might be announced

This section pertains to tax deductions for investments and expenditures. It allows individuals to claim deductions for certain investments and expenditures, such as contributions to provident funds, life insurance premiums, and tuition fees for children's education. The maximum amount that can be claimed under this section is Rs 1.5 lakh.

This section pertains to tax deductions for health insurance premiums. It allows individuals to claim deductions for health insurance premiums paid for self, spouse, parents, and children. The maximum amount that can be claimed under this section is Rs 25,000 for self and family and Rs 50,000 for senior citizens.

This section pertains to tax benefits for education loans. It allows individuals to claim deductions for the interest paid on education loans taken for higher education. There is no maximum limit for this section and the deduction can be claimed for a maximum of 8 years or till the interest is paid, whichever is earlier.

This section pertains to tax deductions for charitable donations. It allows individuals to claim deductions for donations made to certain specified charitable institutions and organizations. The maximum amount that can be claimed under this section varies depending on the institution or organization to which the donation is made.

This section pertains to tax deductions for rent paid on self-occupied property. It allows individuals to claim deductions for rent paid if the person does not own any house and does not receive HRA from the employer.

The maximum deduction allowed under Section 80GG is Rs 60,000 per annum which means Rs 5,000 per month.

This section pertains to tax benefits for savings account interest income. It allows individuals to claim deductions for interest earned on savings bank accounts up to a maximum of Rs 10,000.

This section pertains to tax deductions for individuals with disabilities. It allows individuals with certain specified disabilities to claim deductions for their income. The maximum amount that can be claimed under this section is Rs 75,000 is for people with disabilities, and Rs. 1,25,000 deduction for people with severe disability.

This section pertains to tax benefits for first-time homebuyers. It allows first-time home buyers an additional interest deduction of Rs 50,000 on home loan taken for buying a house whose value does not exceed Rs 50 lakh.

This section pertains to tax deductions for royalty income from patents. It allows individuals to claim deductions for income earned from patents registered on or after April 1, 2003. The maximum amount that can be claimed under this section is Rs 3 lakh.

Section 80CCD (1B) of the Income Tax Act provides for an additional deduction of up to Rs 50,000 for contributions made to the NPS, over and above the deduction of Rs 1.5 lakh available under Section 80CCD (1). This additional deduction is available for all assessee, regardless of whether they are salaried or self-employed.