ITR Filing: Have you filed Income Tax Return? It is necessary to file income tax return if the annual gross income is more than Rs 2.5 lakh. Its deadline (last date) is July 31, 2022. Taxpayers are allowed to claim multiple deductions. This reduces the tax burden on him. We all know about the investment options covered under section 80C. You can claim deduction by investing in them. There are other deductions that you can claim to reduce your tax liability. Let’s know about them.
1. Deduction on Contribution to Pension Fund
If you have contributed to an annuity plan of an insurance company to get pension in the financial year 2021-22, then you can claim deduction on the contribution amount. Section 80CCC allows deduction up to Rs 1.5 lakh on purchase of pension products. Both Resident Indians and NRIs can claim deduction on this contribution for pension.
An additional deduction of Rs 50,000 can be claimed on contribution to NPS. This claim can be made under section 80CCD. In the 2015 budget, the maximum amount for contribution to NPS was increased from Rs 1 lakh to Rs 1.5 lakh. Apart from this, taxpayers have been allowed an additional deduction of Rs 50,000 on contribution to NPS. For this a new section 1B has been added.
2. Deduction on Interest Income from Savings Account
Income up to Rs 10,000 earned in the form of interest in a financial year on a savings account is exempt from tax. If you have earned income in the form of interest from savings account, cooperative bank account and post office savings scheme in the bank, then you can claim deduction up to the specified limit.
3. Deduction on Medical Insurance and Preventive Health Checkup
If you have purchased a medical policy for yourself and your family (wife and children), you can claim deduction under section 80D. The deduction limit on medical policies for yourself and your family is Rs 25,000 per annum. Apart from this, separate deduction can be claimed for parents. Deduction up to Rs 25,000 can be claimed if the parents are below 60 years of age. If the parents are above 60 years of age, you can claim deduction of Rs 50,000 annually.
You can claim deduction of Rs 5,000 annually for health checkups for yourself and your family members. This claim can also be made under section 80D. Your parents also come under this purview.
4. Deduction on payment of rent to parents
If you pay house rent to your parents, you can claim deduction on the same. This deduction under house rent allowance can be made under section 10(13A). Keep in mind that you can claim this deduction only if HRA is part of your salary package. A rent agreement and rent receipt will be required to claim this deduction.
If you have donated to a recognized institution or charitable organization, then deduction can be claimed on the amount of donation. This claim is made under section 80G. For this, it is necessary that the donation is given through cheque, draft or cash. Donations above Rs 2,000 must be made by check or draft. There is no limit on the amount to avail the deduction on donations.
6. Deduction on purchase of Electric Vehicle
Deduction can be claimed on the interest amount paid on purchase of an electric vehicle. This claim is made under section 80EEB. This was announced in the budget of 2019. Maximum deduction of Rs 1.5 lakh is allowed in a financial year.
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