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Income Tax Rebate

Let us first come to the question, ‘What is an income tax rebate?’ Tax rebates are a facility offered by the government. They are typically granted to encourage taxpayers to save, invest, or spend in ways that align with government policies. For the middle-income group, these rebates are important as they can bring significant tax relief.Read More

The Income Tax Act, of 1961, provides specific and clear guidelines regarding what is rebate on income tax. These are to be followed to stay compliant with tax laws in the country. There are certain expenses and schemes that offer tax benefits by reducing your tax liability.Read Less

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Written ByShruti gujarathi
AboutShruti gujarathi
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Shruti gujarathi has 5 years of experience in the BFSI sector, and as Manager- Digital Marketing at Bajaj Allianz Life Insurance, manages digital and content marketing. She has had hands-on experience in content strategy, performance marketing and Strategic Alliances over a career spanning 10 years.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 25th Feb 2025
Modified on: 26th Feb 2025
Reading Time: 15 Mins
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  1. Saving bank interest earned on the deposits upto Rs 10,000 under section 80TTA

  2. Interest paid on home loan under section 80EEA

  3. Loan taken for higher studies under section 80E

  4. Health insurance premiums under section 80D

  5. Life insurance premiums under section 80C

  6. Donations to charity under section 80G.

 

Types of income tax rebate

 

Now, let us take a look at what makes you eligible for an income tax rebate:

  1. Section 80C1

    Some of the most well-known income tax rebates in the country come through Section 80C of the Income Tax Act. Here, you get to reduce your tax liability up to Rs. 1.5 lakhs. Individuals and HUFs are eligible for 80C if you invest in:

    1. Life Insurance Premium

    2. Public Provident Fund (PPF)

    3. Statutory Provident Fund (SPF)

    4. Recognised Provident Fund (RPF)

    5. National Pension Schema (NPS)

    6. Senior Citizen Saving Scheme (SCSS)

    7. Sukanya Samridhi Yojana (SSY) etc,.

  2. Section 80D

    The premiums that Individuals and HUFs pay towards a health insurance premium qualify for tax benefits under section 80D. Take a look at the table1 below to understand:

Policyholders

Deductions for self and family

Deductions for parents

Preventive Health Check-Ups

Deductions limit

Self and family below 60 years of age

₹25,000

-

₹5,000

₹25,000

Self, family, and parents below 60 years of age

₹25,000

₹25,000

₹5,000

₹50,000

Self and family below 60 years of age and parents above 60 years of age

₹25,000

₹50,000

₹5,000

₹75,000

Self, family, and parents above 60 years of age

₹50,000

₹50,000

₹5,000

₹1,00,000

 

  1. Section 24B2

    Under Section 24B of the Income Tax Act, you can claim a rebate on the interest paid toward home loan repayments. This rebate is capped at Rs. 2 lakh per financial year from your gross income for a self-occupied home, as long as the construction or acquisition of the property is completed within five years, providing significant relief to homeowners.
    Remember: Section 24B applies exclusively to home loans that are taken for residential properties.

  2. Section 80E1

    An income tax rebate is also available for the interest on loans taken for higher education. This is the meaning of income tax rebate under Section 80E.

    Note: The deduction for the total interest paid can be claimed over eight years( beginning from the year you start repaying the loan interest) or till the entire interest is paid, whichever is earlier .

  3. Section 80G3

    To encourage and show support for charitable services, the government offers either 100% or 50% (with or without restriction) tax deductions. For instance, schemes like the National Defense Fund that have been set up by the Central Government, the Prime Minister’s National Relief Fund and funds that are set up by a state government for medical relief to the needy are eligible for a 100% deduction.

    Note: Donations such as Prime Minister’s Drought Relief Fund qualify for a 50% deduction.3

  4. Section 80TTA

    Under Section 80TTA, individual or HUF can avail a tax rebate of up to Rs. 10,000 on the income/ interest that you earn on your savings deposits.1

How to claim an income tax rebate?
 

Now that you have a fair idea of what is income tax rebate is, let us take a look at how you can claim it. Here’s a step-by-step guide:

  1. Understand the eligibility

    Apart from the ones mentioned above, several other sections of the Income Tax Act,1961 offer income tax rebates. The deductions may be further divided into categories such as senior citizens, people with disabilities, etc.

  2. Know your taxable income.
    Your taxable income is not just your salary; it also needs to include income from all other sources, such as any income from your business, capital gains, and interest earned. The net taxable income is determined by subtracting eligible exemptions from your total income.

  3. Identify the section that you fall in

    You would now have to analyses your exemptions and the sections to determine what type of rebates you are eligible for.

  4. Complete the paperwork

    The next important step in filing the claim is your documentation. Depending on the kind of rebate you are seeking, you will have to ensure you have all receipts, proofs, and certificates.

  5. File the Income Tax Return

    The last step is filing the claim correctly. Make sure you understand the new and old tax regimes so that you can decide which regime offers you the maximum benefits. Now, file the ITR online or physically, as you deem right.


Conclusion
 

Understanding income tax rebates and how to make a claim correctly can be very helpful in making the most of the exemption allowed by the government. In case you need more help, reach out to a financial expert or a tax advisor who can help you manage your taxes.

 

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The views stated in this article are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. Bajaj Allianz Life Insurance Company Ltd., Regd. office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, Reg. No.: 116, CIN: U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us: customercare@bajajallianz.co.in

Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility

BJAZ-WEB-ECNF-13152/25

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Disclaimer

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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