Claiming tax deductions under various sections of the Income Tax Act can significantly reduce your taxable income and overall tax liability. In this blog, we will explore how to claim deductions under Section 80C, 80D, and other relevant sections, providing you with the necessary information to maximize your tax savings.
1. Section 80C: Investments and Expenses
Section 80C is one of the most popular sections for tax-saving investments and expenses. The maximum deduction available under this section is INR 1.5 lakh per financial year. Here are some eligible investments and expenses under Section 80C:
- Public Provident Fund (PPF)
- Employees’ Provident Fund (EPF)
- National Savings Certificate (NSC)
- Equity Linked Savings Scheme (ELSS)
- Life insurance premiums
- Home loan principal repayment
- Tuition fees for children
- Five-year fixed deposits with banks or post office
How to Claim Section 80C Deductions
To claim deductions under Section 80C, follow these steps:
- Invest in eligible instruments before the end of the financial year.
- Collect and maintain proofs of investments and expenses.
- Enter the total amount of eligible investments and expenses in the relevant section of your ITR form.
2. Section 80D: Health Insurance Premiums
Section 80D allows deductions for health insurance premiums paid for self, family, and parents. The maximum deduction available is:
- Up to INR 25,000 for self, spouse, and dependent children
- Additional INR 25,000 for parents (INR 50,000 if parents are senior citizens)
- An additional deduction of INR 5,000 is allowed for preventive health check-ups.
How to Claim Section 80D Deductions
To claim deductions under Section 80D, follow these steps:
- Pay health insurance premiums before the end of the financial year.
- Maintain receipts and policy documents as proof of payment.
- Enter the total amount of premiums paid in the relevant section of your ITR form.
3. Section 80E: Education Loan Interest
Section 80E allows deductions for interest paid on education loans taken for higher studies. There is no upper limit on the amount of deduction. The deduction is available for a maximum of 8 years or until the interest is fully repaid, whichever is earlier.
How to Claim Section 80E Deductions
To claim deductions under Section 80E, follow these steps:
- Pay the interest on your education loan before the end of the financial year.
- Obtain a certificate from the financial institution specifying the interest paid.
- Enter the total interest paid in the relevant section of your ITR form.
4. Section 80G: Donations to Charitable Institutions
Section 80G allows deductions for donations made to specified charitable institutions and relief funds. The deduction can be 50% or 100% of the donation amount, depending on the institution.
How to Claim Section 80G Deductions
To claim deductions under Section 80G, follow these steps:
- Make donations to eligible charitable institutions before the end of the financial year.
- Obtain receipts and 80G certificates from the institutions as proof of donation.
- Enter the total amount of donations made in the relevant section of your ITR form.
5. Section 80TTA: Savings Account Interest
Section 80TTA allows a deduction of up to INR 10,000 on interest earned from savings accounts with banks, post offices, or cooperative societies. This deduction is available to individual taxpayers and HUFs.
How to Claim Section 80TTA Deductions
To claim deductions under Section 80TTA, follow these steps:
- Calculate the total interest earned from savings accounts during the financial year.
- Enter the total interest amount in the relevant section of your ITR form.
6. Section 24(b): Home Loan Interest
Section 24(b) allows a deduction of up to INR 2 lakh on interest paid on home loans for a self-occupied property. For a rented property, the entire interest amount can be claimed as a deduction.
How to Claim Section 24(b) Deductions
To claim deductions under Section 24(b), follow these steps:
- Pay the interest on your home loan before the end of the financial year.
- Obtain an interest certificate from the financial institution specifying the interest paid.
- Enter the total interest paid in the relevant section of your ITR form.
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Conclusion
Claiming deductions under Sections 80C, 80D, and other relevant sections can significantly reduce your taxable income and overall tax liability. By understanding and following the steps outlined above, you can ensure that all eligible deductions are claimed correctly, maximizing your tax savings.
For professional assistance and expert guidance, visit Our Tax Partner. We are here to help you navigate the complexities of income tax filing and ensure a smooth and hassle-free experience.
