The process of submitting an income tax return (ITR) started with the start of the new fiscal year. By the end of May, the majority of businesses will provide their employees with Form-16. Concurrently, a few self-employed workers have finished their ITR application.
The deadline for filing an income tax return (ITR) is July 31, 2024, this time. You may reduce the income tax return by claiming specific deductions while completing your ITR. A lot of the time, individuals are unaware of the deductions that they may make.
Under the new tax system, there is no advantage associated with any type of exemption or deduction. However, there were other investment choices available under the previous tax system that allowed for tax deductions. Some tax deductions may not be well known, but filing under them undoubtedly benefits the taxpayer are mentioned below.
National Pension Scheme
If you invest in an NPS Tier-1 account, you are eligible for an extra deduction of Rs 50,000 under section 80CCD (1B). This is not the same as the section 80C deduction advantage for investments up to Rs 1.50 lakh.
Deduction Made On Rent Payment
Under some circumstances, individuals operating their own companies and members of the salaried class who do not get the House Rent Allowance (HRA) may be able to claim a tax deduction on rent under section 80GG for rented housing.
Spending On Medical Care
The taxpayers are eligible for a tax deduction for their parents’ healthcare expenses. It is commonly known that individuals can deduct their health insurance premiums for their parents, dependent children, and life partners from their taxes. However, you can additionally claim a tax deduction of up to Rs 50,000 under Section 80D on your parents’ medical expenditures if they are elderly and do not have health insurance. In addition, you can deduct Rs 5000 from your taxes under Section 80D for your parents’ and life partner’s medical examinations.
Discount For Electric Cars
You can additionally be excluded from income tax on interest paid on loans for electric vehicles if you have purchased one and taken out a loan for it. You may deduct up to Rs 1,50,000 from your interest payments on bank loans under Section 80EEB. However, you will only be able to take advantage of this deduction if your loan is granted between January 1, 2019, and March 31, 2023.
Discount On Donations
In addition, gifts to some charities may qualify for an income tax deduction. Section 80G exempts donations made to these organizations from taxes. However, the tax deductions you receive vary based on the kind of gift you make to the registered organization.
The Income Tax Act of 1961 provides an extensive number of other tax deduction choices in addition to those already stated. Under section 80C, you can invest in PPF, EPF, ELSS, and NSC. You can deduct the interest you pay on your home loan under Section 24. Interest paid on a loan taken out under Section 80E is also deductible from taxes. Additionally, you are eligible for a tax deduction on your house rent allowance (HRA).
