One can file IT returns when there is a mismatch between the tax amount paid and the actual payable amount. When the amount paid is higher than the actual payable amount, then you can file for a refund.
In a general scenario, we might think that one can gift a certain amount of his health to his relatives who do not have any source of income and assume that only the remaining income will be taxed. But in reality, not only the amount that one gives away as a gift is taxable, the amount the gift money makes if invested is also taxable.
Under the Income Tax Act of 1961, there is a slew of legal ways to save money on taxes. Tax-advantaged mutual funds, NPS, insurance premiums, and medical insurance are just a few examples.
Employees in the organised sector are required to contribute 12% of their salaries to the Employees Provident Fund under the EPF Act. This deduction contributes to the Section 80C limit of Rs 1.5 lakh.
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