What are the deductions that income tax payers can avail?
A taxpayer can claim a maximum deduction of â¹1.5 lakh on tax-saving mutual funds and fixed deposits, PPF, EPF, and life insurance premium among others. Further, House Rent Allowance is partly exempted from tax for salaried people. Individuals can also avail deductions on interest on house and education loans, medical insurance premium, donations to political parties and for social causes.