Tax Deductions for Self-Employed Individuals in India for 2024
Tax Deductions for Self-Employed Individuals in India for 2024
Self-employed individuals in India can significantly reduce their taxable income by claiming eligible deductions. These deductions can help minimize tax liability and boost overall financial well-being. Here's a breakdown of some key tax deductions available for self-employed individuals in 2024:
Deductions Under Section 80C
Life Insurance Premiums: Premiums paid towards life insurance policies can be deducted up to Rs. 1.5 lakh.
Public Provident Fund (PPF): Contributions to PPF are eligible for a deduction of up to Rs. 1.5 lakh.
National Pension Scheme (NPS): Investments in NPS are deductible up to Rs. 1.5 lakh.
Sukanya Samriddhi Yojana (SSY): Contributions to SSY for a girl child are deductible up to Rs. 1.5 lakh.
Five-Year Tax-Saving Fixed Deposits: Interest earned on five-year tax-saving fixed deposits is exempt from tax.
Deductions Under Section 80D
Health Insurance Premiums: Premiums paid for health insurance for oneself, spouse, and dependent children are deductible up to Rs. 25,000. For senior citizens, the deduction limit is Rs. 50,000.
Preventive Health Checkups: Expenses incurred on preventive health checkups are deductible up to Rs. 5,000.
Deductions Under Section 80E
Education Loan Interest: Interest paid on an education loan is deductible up to Rs. 8 lakh.
Deductions Under Section 80GG
House Rent Allowance (HRA): If not receiving HRA from an employer, a deduction can be claimed for house rent paid. The deduction is calculated based on a formula.
Deductions Under Section 80I
Income from Certain Businesses: Income from certain specified businesses, such as agriculture and small-scale industries, can be exempt from tax under this section.
Deductions Under Section 80IB
Income from Certain Specified Businesses and Professions: Income from certain specified businesses and professions, such as startups and small-scale industries, can be exempt from tax under this section.
Other Deductions
Professional Tax: Professional tax paid is deductible.
Interest Paid on Home Loan: Interest paid on a home loan is deductible up to Rs. 2 lakh.
It's important to note that the specific deductions available and the limits may vary depending on individual circumstances and the latest tax regulations. Consulting with a tax professional can help you identify the most suitable deductions for your situation and optimize your tax savings.
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