One of the most common questions by all is: what should I buy to milk the tax breaks that I am legally allowed? So here is a guide to the deductions you can use apart from the popular section 80C Rs 1-lakh deduction.
Look beyond section 80C cut your tax burden further. Remember, you will have to spend under a specific head to claim these sweet little tax breaks. Charity, education loans and medical bills; all qualify for a tax break.
1. 80C
Qualifying products: NSC, notified bank deposits and post office time deposits, EPF and PPF, ELSS, life insurance plans, deferred pension plans
Mandatory requirements: Payment has to be made before 31 March 2008
Who can avail the deduction: Individuals and HUF (both resident and non-resident)
How much: Cannot exceed Rs 1 lakh. Read on for more...
Text: Outlook Money
Image: Indian Finance Minister P Chidambaram addressing a press conference in New Delhi. Photograph: Manan Vatsyayana/AFP/Getty Images
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