Chapter VI deductions that ease your burden
Income Tax is a direct tax on any income earned by a person during a financial year. An individual is supposed to file a return of income and pay taxes on the same by 31 st July of the next year. Paying taxes always seems like a burden to the common man. However, the issue synonymous to both Direct and Indirect Taxes that must be addressed is Chapter VI of the Income Tax Act, 1961 has offered a variety of deductions to lessen the tax burden. A few of the major deductions enlisted under Chapter VI are presented as follows in accordance with the recent updates. It is notable that these deductions cannot exceed the Gross Total Income of the individual. Section Description Maximum Deduction threshold 80C Contribution to LIC, RPF, NSS, Tuition fees, principal repayment for purchase/construction of residential house, Sukanya Samridhi Account, ULIPS/ELSS, 5-year FD, Subscription to NABARD Bonds 80C + 80CCC+ 80CCD (1) should be less than or eq