The maximum amount not chargeable to tax as specified by the government under income tax in India for the financial year 2023-24 is Rs.3 lakhs for individuals. This is called the basic exemption limit. This means that the first Rs.3lakhs of an individual’s income are not taxable.

There are other deductions that an individual can claim under different sections of the Income Tax Act, 1961. These deductions can further reduce the taxable income. The maximum deduction that can be claimed under all sections is Rs.1.5 lakh for individuals.

For senior citizens (who are 60 years of age or above), the basic exemption limit is Rs.5 lakhs. They can also claim additional deductions under certain sections.

The maximum amount not chargeable to tax for other taxpayers, such as HUFs, companies, and trusts, is different. You can find more information about the exemption limits for different taxpayers on the website of the Income Tax Department of India.

Here are some of the deductions that an individual can claim under different sections of the Income Tax Act, 1961:

• Section 80C: Deduction for investments made in certain schemes, such as provident funds, life insurance policies, and equity-linked savings schemes.
• Section 80D: Deduction for medical expenses incurred on the assesses, his/her spouse, and dependents.
• Section 80TTA: Deduction for interest income up to Rs.10,000 on savings account.
• Section 80U: Deduction for disability.

FAQ QUESTIONS

• What is the basic exemption limit for an individual in India?

The basic exemption limit for an individual in India is Rs.3 lakhs for the financial year 2023-24. This means that the first Rs.3 lakhs of an individual’s income are not taxable.

• What are the other deductions that are allowed under the Income Tax Act?

There are many other deductions that are allowed under the Income Tax Act, such as:

* Deduction for medical expenses

* Deduction for interest on home loan

* Deduction for donations to charitable organizations

* Deduction for life insurance premium

* Deduction for pension contribution

The maximum amount of deduction that can be claimed under these sections varies depending on the individual’s circumstances.

• What is the maximum amount of tax that can be deducted under Section 80C?

The maximum amount of tax that can be deducted under Section income tax 80C is Rs.1,50,000 for the financial year 2023-24. This section allows deduction for a variety of expenses, such as:

* Contribution to provident fund

* Contribution to insurance premium

* Investment in equity mutual funds

* Investment in National Savings Certificate

• What is the difference between the basic exemption limit and the maximum deduction limit?

The basic exemption limit is the amount of income tax that is not taxable. The maximum deduction limit is the maximum amount of deduction that can be claimed under the Income Tax Act. The two limits are not the same, and an individual can claim deductions up to the maximum deduction limit, even if their income is below the basic exemption limit.

CASE LAWS

The maximum amount not chargeable to tax under the Income Tax Act, 1961 is specified in Section 10, which lists out the various incomes that are exempt from tax. Some of the important exemptions under Section 10 are as follows:

• Income of an individual up to Rs.2,50,000 (for the financial year 2023-24)
• Income of a senior citizen (aged 60 years or above) up to Rs.3,00,000
• Income of a woman below the age of 60 years who is a widow, divorced or deserted, up to Rs.3,00,000
• Income of a person with disability up to Rs.3,00,000
• Income from agricultural income
• Income from house property (subject to certain conditions)
• Income from savings account
• Income from life insurance policy
• Income from pension
• Income from gratuity

There are many other exemptions under Section 10,income tax and the specific exemption that applies to an individual will depend on their circumstances.

In addition to the exemptions mentioned above, there are also certain deductions that can be claimed from the total income before calculating the tax liability. Some of the important deductions are as follows:

• Deduction for medical expenses
• Deduction for interest on home loan
• Deduction for donation to charity
• Deduction for transport allowance
• Deduction for education allowance
• Deduction for pension contribution

The specific deductions that can be claimed will depend on the individual’s circumstances and the provisions of the Income Tax Act.

The maximum amount not chargeable to tax is subject to change from time to time, and the current limits are applicable for the financial year 2023-24. The government may revise the limits in future, so it is important to check the latest tax laws before filing your income tax return.