Tax Deductions for Self-Employed Individuals with a Turnover of Rs. 50 Lakhs in 2024

Tax Deductions for Self-Employed Individuals with a Turnover of Rs. 50 Lakhs in 2024

Self-employed individuals in India can claim various tax deductions to reduce their overall tax liability. For those with a turnover of Rs. 50 lakhs in 2024, understanding these deductions can significantly impact their tax savings.

Deductions under Section 80C:

• Life Insurance Premiums: Premiums paid towards life insurance policies can be deducted up to Rs. 1.5 lakhs.

• Public Provident Fund (PPF): Contributions to PPF are eligible for a deduction of up to Rs. 1.5 lakhs.

• Sukanya Samriddhi Yojana (SSY): Investments in SSY for a girl child can be deducted up to Rs. 1.5 lakhs.

• National Pension Scheme (NPS): Contributions to NPS are eligible for a deduction of up to Rs. 1.5 lakhs.

• Tuition Fees: Tuition fees paid for children's education can be deducted up to Rs. 1.5 lakhs.

• Home Loan Principal Repayment: Principal repayment on a home loan can be deducted up to Rs. 1.5 lakhs.

Deductions under Section 80D:

• Health Insurance Premiums: Premiums paid for health insurance for oneself, spouse, and dependent children can be deducted up to Rs. 25,000. For senior citizens, the deduction limit is Rs. 50,000.

• Medical Expenses: Medical expenses incurred for oneself, spouse, and dependent children can be deducted up to Rs. 25,000. For senior citizens, the deduction limit is Rs. 50,000.

Deductions under Section 80E:

• Education Loan Interest: Interest paid on an education loan can be deducted for up to eight years.

Deductions under Section 80GG:

• Rent Paid: If you are not living in your own house and are paying rent, a deduction of up to Rs. 30,000 can be claimed.

Deductions under Section 80IB:

• Investment in Specified Businesses: Investment in certain specified businesses can be deducted up to Rs. 3 lakhs.

Deductions under Section 80I:

• Investment in Specified Industrial Undertakings: Investment in specified industrial undertakings can be deducted up to Rs. 3 lakhs.

Deductions under Section 80JJAA:

• Employment of Disabled Persons: Deduction can be claimed for the salary paid to disabled persons employed.

Other Deductions:

• Donation to Charitable Trusts: Donations to eligible charitable trusts can be deducted.

• Interest on Home Loan for Self-Occupied Property: Interest paid on a home loan for a self-occupied property can be deducted.

It is important to note that the specific deductions available and the limits may vary depending on individual circumstances and the latest tax laws. Consulting with a tax professional can help you identify the most suitable deductions for your situation and maximize your tax savings.

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