There is a general tendency among individual
tax payers to be curious about additional ways to save tax and avail of
eligible deductions. Most of the times we are unaware of such less popular
deductions or in certain cases our chartered accountant might unintentionally
overlook these details while computing our tax liability. Generally we limit
our deductions to popular 80C. We would like to share some of the uncommon
deductions which one can avail as per applicability.
- Section 80D: Since A.Y 2013-14, a sub-limit has been introduced in Sec 80D to claim benefit of preventive health checkup up to Rs.5,000/- p.a.This benefit is in addition to the deduction you get under the medical insurance premium payable for yourself, spouse and parents. The health premium payment deduction for senior citizens is Rs 20,000/- pa under Sec 80D. The same can also be claimed by the person who pays premium for them. i.e. their children.
- Section 80TTA:An individual can claim up to a maximum of Rs. 10,000/- p.a as deduction in respect of interest earned in savings account with a bank.
- Section 80E: The entire amount of interest paid on an education loan taken for higher studies or vocational curses qualifies for deduction. The deduction benefit on interest is allowed for maximum eight years, or till the interest is fully paid.
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Section 80GG :A Deduction to the extent of Rs 2,000 per month or 25 per cent of total income (whichever is less) is available under Section 80GG of the I-T Act in respect of rent paid by an individual on his accommodation, provided the individual does not get any House Rent Allowance (HRA) from his company.
- Section 80U: An individual who is certified by a prescribed medical authority to be a person with disability shall be allowed a deduction of Rs 50,000 and an individual, who is certified as a person with severe disability, shall be allowed a deduction of Rs.1,00,000/-.
Hence, we would suggest that as you start collecting your investment proofs for tax saving for the current financial year, also remember that there could be more tax benefits like above you can avail.However, the applicability and usefulness of each benefit is subjective and may vary with every individual. Please contact your planner today to get a more personalised tax plan for yourself.
Thanks and Regards
Team
Email: saarthifp@gmail.com
