ITR filing FY 2024-25: Don't miss THESE 10 must-know tax deductions under 80C, 80D and more
Do keep in mind that key documents such as Form 16, Annual Information Statement (AIS), and Taxpayer Information Statement (TIS) simplify this entire process by capturing income and Tax Deducted at Source (TDS) details.
Furthermore, to facilitate the same process and help in boosting savings of taxpayers, the Income Tax Act provides several deductions for both salaried and self employed individuals. Here are ten commonly claimed sections to help you file smarter and save more.
This particular section permits deductions of up to ₹ 1.5 lakhs on an annual basis. Eligibility investments include Employee Provident Fund (EPF), Public Provident Fund (PPF), life insurance premiums, Equity Linked Savings Schemes (ELSS), five year tax saving fixed deposits along with National Savings Certificates (NSC).
Under this section, contributions which are made to pension plans provided by insurance companies qualify for deductions. It formulates part of the overall ₹ 1.5 lakh limit under Section 80C. Due to the same it provides another avenue that tax payers can explore and utilise to maximise their tax savings.
This section provides cover to individual contributions that are made to the National Pension System (NPS). Both salaried and self employed individuals can claim deductions within the combined 80C ceiling. To ensure maximum benefits from this section it will be prudent for tax payers to discuss their savings strategy with a certified financial advisor.
Taxpayers can go on and claim an additional ₹ 50,000 exclusively for NPS contributions under this particular section. Do remember, this claim will be over and above the Section 80C cap. This helps in ensuring that NPS remains one of the few tax saving instruments which is available under both the old and new regimes, providing long term retirement benefits along with immediate advantages in tax for contributors.
Under this particular provision, deductions for health insurance premiums are available up to ₹ 25,000 for self and family, not only this, there is a provision of ₹ 50,000 for senior citizen parents as well. Prevention health scans and checkup are permitted within this limit, up to ₹ 5,000.
The expenses on the care of a dependent with a disability qualifies for deduction under this legal provision. ₹ 75,000 is the limit for regular disabilities along with ₹ 1.25 lakhs for severe and serious conditions.
The interest paid on education loans for higher studies can be requested for and claimed as a deduction under this section. This benefit can be claimed for up to eight consecutive years, with no upper limit on the total amount. Hence, the efficient and planned use of this section can help aspiring students to propel their educational journey and transform themselves into successful professionals.
First time home buyers can avail the benefit of this section by claiming a deduction of up to ₹ 50,000 annually on interest paid for a particular home loan. This is subject to conditions on loan size and the value of the property.
The interest payments on housing loans for self occupied properties are deductible for up to ₹ 2 lakhs annually. Furthermore, for let out or rented properties the entire interest amount may be claimed. This section goes a long way to helping save interest payments on housing loans.
This section permits tax deductions on donations made to approved charitable institutions, with eligible deductions being either 50% or 100% of the contributions based on the approval provided by the organisation.
For all personal finance updates, visit here.
Disclaimer: This article is for informational purposes only and does not constitute tax or financial advice. Readers are advised to consult a qualified tax professional for personalised guidance.
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