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Time of India
2 days ago
- Business
- Time of India
Don't forget to claim these five deductions for reducing your income tax liability for AY 2025-26 under old tax regime
Tax deductions for filing ITRs under old tax regime 1. Deduction for health insurance premiums under Section 80D 2. Deduction for Employees Provident Fund (EPF) under Section 80C 3. Deductions for investing in Public Provident Fund (PPF) under Section 80C 4. Deduction for investing in ELSS mutual funds under Section 80C 5a. Tax deduction under section 80TTA for savings bank account interest 5b. Tax deduction under Section 80TTB for senior citizens Can a husband claim tax deductions for investments made by wife or children if they have not themselves claimed it? It's been a while since the ITR-1 and 4 forms became available for online filing and as of June 30, 2025, 67 lakh ITRs have been filed and verified. However, ITR-2 and ITR-3 still aren't available for online submission. This could lead to a last-minute rush for filing Income Tax Returns ( ITR s) since the deadline for submitting ITR for FY 2024-25 (AY 2025-26) is September 15, 2025. So, make sure that this last-minute filing frenzy doesn't cause you to miss out on claiming certain deductions you are eligible for, which could end up costing you more in reading to discover some of the most common ways you can claim tax deductions while filing your ITR under the old tax a taxpayer hasn't claimed deductions for investments made in a specific financial year on their income tax return (ITR) for that year, they can't claim those deductions in any other out the information below to learn about some key tax deductions you can claim under the old tax regime:If you are under 60, you can get a tax deduction of up to Rs 25,000 for paying your health insurance premium under Section 80D. Just keep in mind that this deduction is only available if you pay for your own health insurance and for your dependents (like your wife and dependent children) during the financial year, and it depends on the threshold limit and other rules in can claim an additional deduction of up to Rs 25,00 for paying insurance (premium) of parents if they are under 60 years of age. The deduction could go up to Rs 50,000 if the parents are 60 years or older. Since FY 2015-16, there's also an additional deduction of Rs 5,000 for preventive health keep in mind, the Rs 5,000 deduction is included in the overall limit of Rs 25,000 or Rs 50,000 based on the parents' if you are not paying any amount as health insurance premium for a senior citizen then you have the option to claim up to Rs 50,000 in aggregate on account of medical expenditure incurred on senior citizen read: ITR filing due date extended but deadline to pay final tax without penalty is July 31 or Sept 15 now for FY 2024-25? Many salaried employees are covered under the Employees Provident Fund (EPF) scheme. Under this scheme, employees are required to put 12% of their salary into their EPF account. The employer matches this contribution. However, you can only claim a tax deduction for your contribution under Section 80C. If you want to add more to your EPF account, you can opt for the Voluntary Provident Fund (VPF). Just remember that the total contributions to both EPF and VPF can't exceed your basic salary in any financial note that the interest earned on EPF is not entirely tax-free anymore starting from FY tax exemption limits have been set for both government and private sector employees. Starting from 2021-22, if an employee's contributions to EPF and VPF accounts exceed Rs 2.5 lakh in a financial year, the interest earned on the excess amount will be taxable. Additionally, from FY 2020-21, if an employer's total contributions to EPF, NPS, and the superannuation fund surpass Rs 7.5 lakh in a financial year, then the income earned on the excess amount will also be taxable for read: Form 16 changes: Higher standard deduction for these taxpayers, and other changes in Form 16 for FY 2024-25 (AY 2025-26) Under Section 80C, you can claim a tax deduction of up to Rs 1.5 lakh in a financial year if you invest in specific instruments like the public provident fund (PPF), or the tax-saving fixed deposits (FDs), among PPF enjoys an 'exempt-exempt-exempt' (EEE) status, which means you can claim a tax deduction for investing in it. Plus, the interest earned on PPF is tax-free and so is the amount you receive at maturity. . The lock-in period for PPF is 15 years and can be extended too if you you invested in PPF in FY 2023-24, make sure to claim that investment as a tax deduction under Section 80C. You can claim all tax deductions under Section 80C for investment made in the financial year that corresponds to the assessment year, as long as you chose the old tax savings schemes (ELSS) are mutual funds that invest in equities and have a lock-in period of three years. You can invest in them and claim a tax deduction under Section you can only claim up to Rs 1.5 lakh in a financial year as a deduction under Section 80C. Out of all the eligible schemes under Section 80C, ELSS mutual funds have the shortest lock-in period. While you can claim a tax deduction for investing in ELSS mutual funds, any gains you make at the time of redemption are though you don't have to submit proof of your investments while claiming a tax deduction, it's a good idea to familiarize youself with the rules and have your evidence or proof handy before claiming any expenses. This way, you can steer clear of any disputes down the Accountant Abhishek Soni, co-founder of Tax2Win explains the concept of claiming tax deductions for ELSS mutual you invested Rs 50,000 in an ELSS mutual fund in FY 2022-23 and claimed Rs 20,000 as tax deduction that year, can you claim the rest Rs 30,000 for tax deduction in subsequent years?Soni says: 'No, you cannot claim the remaining Rs 30,000 as a tax deduction in FY 2024-25 (AY 2025-26). Deductions under Section 80C can be claimed only in the financial year in which the investment is actually made. So, if the ELSS investment of Rs 50,000 was made in FY 2022-23, you can claim a maximum deduction of up to Rs 50,000 (subject to the Rs 1.5 lakh 80C limit) only in FY 2022-23. Partial claiming across multiple years is not allowed, even if the full amount wasn't claimed earlier.'Chartered Accountant (Dr.) Suresh Surana says: "Under Section 80TTA of the Income Tax Act, 1961 Resident individuals below the age of 60 years and Hindu Undivided Families (HUFs) are eligible to claim a deduction under Section 80TTA of the IT Act. This provision allows a deduction of up to Rs. 10,000 on interest earned from savings accounts maintained with a bank, co-operative bank, or post office. It is important to note that this benefit is limited exclusively to savings account interest and does not extend to interest earned from fixed or recurring explains: 'The interest on the savings account is taxable as per the income tax slab rates that apply to the investor however, banks do not deduct TDS on savings bank interest. So if the interest is below the exemption limit, be sure to mention this exemption under Section 80TTA. After entering the interest income, complete other sections of the ITR form, including additional income details, deductions, and tax payments.'Senior citizens can claim Rs 50,000 as tax deduction for interest earned from FDs, savings account, post office deposits, individuals aged 60 years or above are entitled to claim a higher deduction under Section 80TTB. This section provides for a deduction of up to Rs. 50,000 on interest income earned from deposits held with banks, including interest from savings, fixed, and recurring deposit accounts. Notably, if a taxpayer claims a deduction under Section 80TTB, they are not permitted to claim benefits under Section 80TTA for the same financial year."Surana adds: "The deduction under Sections 80TTA and 80TTB is available only to resident taxpayers and as such, non-resident individuals (NRIs) are not eligible to claim these benefits. Further, any interest income exceeding the prescribed deduction limit of Rs. 10,000 under Section 80TTA or Rs. 50,000 under Section 80TTB is fully taxable as per the applicable income tax slab rates. Taxpayers should compute and report total interest income accurately, even if such income is not reflected in Form 16, Form 26AS, or the Annual Information Statement (AIS), in order to avoid discrepancies or potential scrutiny from the tax authorities."Surana says: "While filing the income tax return, the total interest earned from savings or other eligible deposits must be disclosed under the head "Income from Other Sources." The corresponding deduction should then be claimed under the appropriate section either Section 80TTA or Section 80TTB within the Chapter VI-A deductions schedule of the ITR form."Soni says that you can't directly claim income tax deductions for investments made by your wife or children. Tax deductions under Sections like 80C, 80D, etc., can only be claimed by the person who has actually incurred the expense or made the investment from their own explains: 'However, by structuring investments in joint names or contributing to joint accounts or policies, both spouses can maximize their tax benefits. For instance, joint home loans or joint life insurance policies allow each spouse to claim separate deductions, but individual investments made solely in your spouse's name will not qualify for deductions under your 80C limit.'
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Business Standard
10-06-2025
- Business
- Business Standard
Tax filing for elderly: Don't overlook or incorrectly claim key deductions
The tax-filing season has begun. Senior citizens should take advantage of the deductions and exemptions available to them. Here's a concise guide to help them make the most of these benefits and file their tax returns accurately. Higher deduction limits Medical deductions: Senior citizens enjoy higher deductions on medical insurance premiums. The deduction limit is Rs 25,000 for those below 60 years. 'It is Rs 50,000 for senior citizens. And if they pay the premium for a dependent senior parent, they can claim an additional Rs 50,000,' says Deepak Kumar Jain, founder and chief executive officer (CEO), Tax benefits for preventive health checkups of up to Rs 5,000 can be claimed within the Rs 50,000 limit under Section 80D. 'If no medical policies have been taken for senior citizens, medical expenses incurred for them (paid other than in cash) can be claimed as a deduction under Section 80D,' says Abhishek Soni, co-founder, Tax2Win. Senior citizens can also claim up to Rs 1 lakh under Section 80DDB for specified diseases, compared to Rs 40,000 for those aged 59 and below. Deepak Kumar Jain informs that this applies to diseases like cancer, Parkinson's, and chronic renal failure. 'If a resident senior citizen, super senior citizen, or their dependant suffers from pre-specified diseases, they can claim a deduction for expenses incurred on treating those diseases,' says Soni. Interest income: Under Section 80TTB, senior and super senior citizens can claim a deduction of up to Rs 50,000 on interest income from savings accounts, fixed deposits, or recurring deposits held in banks and post offices. 'People in this category have retired from service and may not have a regular source of income other than interest from deposits. Hence, providing a higher deduction would enable them to have more disposable income for meeting needs such as health care,' says Sethuraman. Reverse mortgage proceeds are tax-free under Section 10(43). Senior citizens opting for the new tax regime must forgo many of these deductions. 'These include deductions from 80C to 80U, and the higher exemption limits. However, the rebate under Section 87A will still be available,' says Soni. Exempt from filing ITR For individuals aged 59 and below, the basic exemption limit is Rs 2.5 lakh. 'It is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens under the old tax regime. If their income is below this limit, they are not required to file ITR,' says Sudhakar Sethuraman, partner, Deloitte India. Section 194P exempts individuals aged 75 and above from filing tax returns. However, all these exempt categories may still have to file ITR if they meet certain conditions (see box). Those with only pension and interest income from the same bank are not required to file returns. Senior citizens with income below the taxable limit can submit Form 15H to ask banks not to deduct TDS (tax deduction at source). Deepak Kumar Jain suggests filing ITR even if no TDS is deducted. Resident senior citizens not having income from business or profession are exempt from paying advance tax. 'They can pay self-assessment tax at the end of the year instead,' says Deepak Kumar Jain. Points to remember Senior citizens must carefully report all sources of income. 'Include pension, rental income, and capital gains,' says Shubham Jain, associate director, Nangia Andersen. He observes that seniors often miss out on deductions specific to them or claim them incorrectly. Retain payment proof such as premium receipts for insurance, interest certificates, medical bills, and capital gains statements. Deductions should be claimed for payments made in the relevant financial year. 'Changes to the capital gain tax regime, especially regarding indexation benefits on the sale of land or a building introduced this year, should be kept in mind when reporting income,' says Shubham Jain. Seniors must accurately report income to avoid discrepancies with Form 26AS and the annual information statement (AIS). Review both these documents carefully before filing ITR to prevent triggering automated notices. 'Even small interest income, if skipped, can create a mismatch and delay your refund. The portal now highlights mismatches. Use that to your advantage,' says Shubham Jain. Seniors must choose the correct ITR form based on income type, such as pension, interest, rent, or capital gains. After filing, validate the return using an Aadhaar-enabled one-time password to avoid processing delays. Seniors must select the tax regime best suited to their income sources and deductions. Finally, a thorough review before submission can help avoid common errors. Mention bank details accurately to ensure timely refunds. File ITR even if income below exemption limit Made current account deposits above Rs 1 crore
Time of India
05-06-2025
- Business
- Time of India
ITR filing FY 2024-25: Taxpayers take note! These 7 changes in new ITR forms excel utilities are important
The income tax department has introduced new validation rules in the Excel-based ITR-1 and ITR-4 forms for FY 2024–25 (AY 2025–26), requiring more detailed disclosures at the time of filing — particularly from salaried taxpayers claiming deductions under the old tax regime. According to an ET report, experts say this shift to pre-validation aims to curb false claims and ensure quicker, more transparent return processing. Here are 7 key changes in excel utilities forms: 1. HRA claim now needs full salary and rent details Taxpayers claiming House Rent Allowance (HRA) exemption must now disclose their place of work, actual rent paid, actual HRA received, and salary break-up (basic salary and dearness allowance). They also need to indicate whether they live in a metro or non-metro city, as the exemption is based on 50% or 40% of the basic salary depending on location. These details are now mandatory in the ITR-1 form. 2. Section 80C deduction requires policy number or ID To claim deductions under Section 80C — which allows up to Rs 1.5 lakh on investments like PPF, tax-saving FDs, and life insurance — taxpayers must now provide the policy number or a valid document identification number. This move replaces earlier practice where only the deduction amount was reported, bringing more traceability and verification into the system. 3. Section 80D needs insurer's name and policy number For deductions on medical or health insurance premiums under Section 80D, taxpayers are now required to enter the name of the insurance company and the policy or document number in the return. This prevents unsupported claims and aligns deduction filings with insurance records. 4. Section 80E asks for full education loan details To claim interest deduction on education loans under Section 80E, taxpayers must provide detailed loan information. This includes the lender's name, bank name, account number, date of sanction, total sanctioned amount, outstanding amount as on 31 March, and the interest paid. These fields are mandatory, and omission may prevent return submission. 5. Section 80EE / 80EEA home loan claims need lender info Deductions claimed for interest on home loans under Sections 80EE or 80EEA must now be supported with lender details, account numbers, sanction dates, loan amount, and outstanding balance. This ensures that housing-related deductions are verified against actual bank data and limits the scope for overlapping claims, such as HRA and home loan in the same city. 6. Section 80EEB for loans needs sanction details Taxpayers claiming interest on loans for electric vehicles under Section 80EEB must disclose lender name, bank name, account number, loan sanction date, total loan amount, and remaining balance as on 31 March. The requirement mirrors the home and education loan fields and standardises loan-related disclosures across deduction categories. 7. Section 80DDB needs disease name for medical claims For deductions under Section 80DDB — meant for treatment of specified diseases — the name of the disease being treated is now a compulsory field in the ITR form. This change is aimed at ensuring that medical deduction claims are specific and aligned with medical certification norms. Chartered Accountant Abhishek Soni, co-founder of Tax2Win, said the changes mark a move from post-filing scrutiny to real-time validation. 'Previously, only deduction amounts were filled in. Now the ITR utility captures data upfront, which brings transparency,' he said. Gopal Bohra, Direct Tax Partner at N. A. Shah Associates LLP, explained that 276 validation rules are now active for ITR-1 and 347 for ITR-4. 'If a required field is missing — such as a policy number or loan sanction date — the return won't upload. The system will flag an error and halt the process,' he said. Ashish Niraj, Partner at A S N & Company, added that these fields are being introduced to stop deduction misuse. 'Some taxpayers claimed HRA and home loan deductions for the same city. Now, fields like 'place of work' and lender details make cross-verification easier,' he said. 'Only those with full, accurate documentation will be able to complete the filing.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
27-05-2025
- Business
- Time of India
Income tax changes: New Income Tax Bill & New Income Tax Regime
New Income Tax Regime Income tax changes: Finance Minister Nirmala Sitharaman introduced several sweeping changes under the new income tax regime during her Budget 2025 speech earlier this year. The new income tax regime, which is also the default income tax regime, has new tax slabs effective FY 2025-26. Additionally, the basic tax exemption limit and the income level up to which taxpayers are required to pay zero or nil tax has also undergone a change. The most important is that individuals having a taxable income up to Rs 12 lakh will have to pay ZERO tax. The new income tax regime was introduced by the Narendra Modi government a few years ago as an alternate regime for taxpayers to file their tax returns under. The aim of the new income tax regime was to make the income tax return filing process easier without too much paperwork and documentation. However, unlike the old income tax regime, the new tax regime does not offer the most popular tax exemptions and deductions like Section 80C, Section 80D, LTA, HRA etc. One major deduction that is available under the new income tax regime is standard deduction. In fact, the standard deduction available under the new tax regime is higher at Rs 75,000 compared to Rs 50,000 under the old income tax regime. Additionally, the government proposes to get the New Income Tax Bill passed this year, which is a simplified and up-to-date version of the Income Tax Act 1961. The New Income Tax Bill will have key changes for taxpayers as well. As changes in the income tax return filing, income tax calculation come about, it is important for taxpayers to keep a tab on FAQs and important documents released by the government to aid the common man. You can track all the important documents related to the new income tax regime and the New Income Tax Bill here: Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
26-05-2025
- Business
- Business Standard
Retired and saving? CBDT's new guide helps you maximise tax benefits
For many Indians, retirement marks the beginning of a quieter life, but it doesn't mean stepping away from financial responsibilities. Fortunately, the Income Tax Department has rolled out a series of benefits that make post-retirement tax planning easier and more rewarding. From higher exemption limits to tax-free retirement payouts, here's a breakdown of the key tax reliefs available exclusively to retired employees, according to the latest official document released by the Central Board of Direct Taxes (CBDT). Higher exemption limits for senior and super senior citizens Senior citizens (aged 60–80) get a higher basic exemption limit of Rs 3 lakh, compared to Rs 2.5 lakh for others. For those above 80, or 'super senior citizens', the tax-free slab goes up to Rs 5 lakh. These enhanced limits significantly reduce taxable income in the golden years. Pension and retirement payouts: What's tax-free? Several common retirement payouts are exempt from income tax, such as: · Gratuity: Fully or partially exempt under Section 10 (10), depending on the nature of employment. · Commuted pension: Tax-free under specified conditions as per Section 10 (10A). · Leave encashment: Exempt up to specified limits under Section 10 (10AA). · Provident fund & superannuation: Amounts received from recognised funds are also exempt under Sections 10 (11), 10 (12), and 10 (13). Standard deduction and no advance tax hassle Retired employees receiving pension can avail a standard deduction of Rs 50,000. Moreover, senior citizens with no business income are exempt from paying advance tax, easing compliance. Medical and interest income deductions Healthcare expenses tend to rise post-retirement, and the tax law acknowledges that: · Rs 50,000 deduction under Section 80D for health insurance premium or medical expenses. · Rs 1 lakh deduction under Section 80DDB for treatment of specified diseases. · Up to Rs 50,000 deduction under Section 80TTB for interest income from banks, post office, or cooperative banks. No TDS is deducted if interest income is below Rs 50,000 in a year. Special provisions and filing relaxations · Under the Reverse Mortgage Scheme, the amount received is not treated as capital gains. · Very senior citizens (80+) can file returns manually if their income exceeds Rs 5 lakh or refund is due. · From AY 2022–23, citizens aged 75+ with only pension and interest income (from the same bank) are exempt from filing ITR, banks will compute and deduct the applicable tax.
