5. Deduction for Interest from Savings Bank Accounts

One can also get a tax deduction on the gross total income by way of interest on savings account. The deduction can be up to 10, 000 in case of interest on deposits in savings account (except time framed deposits) with a bank, co-operative society or post office. This will be allowed w.e.f. 1st April 2012 (Assessment Year 2013-14).

6. Use Cheques for Charity

Section 80G specifies many deduction opportunities incase of one doing charity. But the deduction can only be availed if the amount is more than 10, 000 and paid in the form of cheques. There are many provisions that qualify for deduction up to either 100 percent or 50percent with or without restriction as given in section 80G. Few Cases where 100 percent tax deductions are granted are charity to National Defence Fund set up by the Central Government, Prime Minister’s National Relief Fund and National Foundation for Communal Harmony etc.

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