India income tax deductions

It may come as a surprise to you, but it is true that there are a number of tax deduction benefits that we as taxpayers forget to claim. Here are some valuable tax deductions that you shouldn’t overlook.

Not all of us are familiar with various tax deduction concepts and the benefits we can avail from those. We tend to follow certain myths regarding tax deduction and we end up making the whole process of taxation too complex. Let’s understand some common tax myths.

Tax Deduction and its Myths

Here are some of the popular tax deduction myths:

India follows a progressive system of taxation, having a three-tiered tax slab, wherein the tax rate increases with an increase in the level of income. As per the tax slabs for the assessment year 2009-2010, an individual with an aggregate annual income of Rs.5,00,000 is liable for income tax worth Rs.47,500.