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Can I save tax by investing in multiple instruments?

Curious about tax savings

Can I save tax by investing in multiple instruments?

Yes, you can save tax by investing in multiple taxsaving instruments as per the provisions of the Income Tax Act. The Act allows taxpayers to claim deductions for investments made in several eligible instruments, including but not limited to:

1. Section 80C investments such as Public Provident Fund (PPF), EquityLinked Savings Scheme (ELSS), National Pension System (NPS), taxsaving fixed deposits (FD), and others.

2. Section 80D investments such as health insurance premiums paid for self, spouse, dependent children, or parents.

3. Section 24 investments such as home loans and the interest paid on them.

4. Section 80TTA investments such as interest earned on savings bank accounts.

5. Section 80E investments such as interest paid on education loans.

Taxpayers can claim deductions up to the maximum limit specified under each section. By investing in multiple instruments, taxpayers can diversify their portfolio while also enjoying tax benefits. However, it is important to keep in mind the overall taxsaving limit of INR 1.5 lakh per year under Section 80C.

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