ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tax credit
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taxable income
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investment income
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tax deduction
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Detailed explanation-1: -Tax deduction refers to claims made to reduce your taxable income, arising from various investments and expenses incurred by a taxpayer. Thus, income tax deduction reduces your overall tax liability. It is a kind of tax benefit which helps you save tax.
Detailed explanation-2: -Claiming tax deductions on your savings account interest is one of the easiest ways to reduce taxable income. Under section 80TTA, interest on the savings account is tax-exempted up to Rs 10, 000. The limit is Rs 50, 000 for senior citizens under section 80 TTB.
Detailed explanation-3: -The payer has to deduct an amount of tax based on the rules prescribed by the income tax department. For instance, An employer will estimate the total annual income of an employee and deduct tax on his Income if his Taxable Income exceeds INR 2, 50, 000. Tax is deducted based on which tax slab you belong to each year.
Detailed explanation-4: -Section 80C provides deductions on various investments up to ₹ 1.5 lakh per year from your taxable income.
Detailed explanation-5: -House Rent Allowance (HRA) Leave Travel Allowance (LTA) Employee Contribution to Provident Fund (PF) Standard Deduction. Professional Tax. Exemption of Leave Encashment. Exemption Under Section 89(1) Exemption from the Receipt Upon Opting for Voluntary Retirement. More items •03-Feb-2023