5) Foreign Taxes –

India has Double Taxation Avoidance Agreements (DTAA) with over 79 nations. Under this, people are taxed with particular rates and norms in more than 1 country. Under the IT Act of ’61, there are 2 sections to save oneself from Double Taxation – Section 90 and Section 91. Section 90 is for people who have paid their taxes in a country, which has signed the DTAA with India. Section 91 covers for those people who have paid taxes in a country which has not signed the DTAA with India. So, people falling under both sections can be eligible for tax deductions.

6) Interest on Higher Education –

Section 80E covers tax deductions on interest on higher education. These deductions are for individual only and not for Hindu Undivided Family. There is no limit for the amount to be deducted for tax. The only area, though, covered by this section is the interest paid and not the principal for higher studies. Deductions are eligible only if interest is paid from chargeable income. Moreover, deductions are covered only when loans are taken from reputed financial institutions or banks and not from relatives.