Income Tax Return Filing deadline: 10 lesser-known tax exemptions you can claim while filing ITR
Explore these lesser-known tax exemptions that can help maximize your savings while filing your income tax return.
The taxpayers across India are scrambling to organise their financial paperwork and maximise their tax savings as the deadline for filing income tax returns (ITRs) is getting closer. Apart from the conventional tax saving investments many tax payers may not know that there are several other exemptions and deductions available. To save more tax you just need meticulous planning.
Here are ten lesser-known exemptions under various sections of Income Tax Act that you might want to consider while filing your ITR:
Preventive Health Check-up: Taxpayers can claim a deduction of up to Rs 5000 on preventive check-ups for self, dependent children, spouse, or parents below 60 years of age under Section 80D.
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Children’s Tuition Fees: The tuition fees paid for children’s education can also provide a tax break under Section 80C, and this often goes unnoticed. Be aware, though, there are specific rules and limits.
Expenses for Dependents: Expenditures on children, parents, and other dependents can lead to tax savings under sections ranging from 80C to 80U.
House Rent Allowance (HRA): If you live in a rented house, you can claim tax exemption under Section 10 (13A) of the Income Tax Act. This exemption can be claimed on actual HRA received, or actual rent paid less 10 per cent of salary, or 50 per cent of basic pay in metro cities (40 per cent for non-metro), whichever is lower.
Leave Travel Concession (LTC): Exemption under Section 10(5) is given for expenses incurred on travel of an individual and his family when on leave, subject to certain conditions.
Interest on Education Loan: Under Section 80E, taxpayers can claim a deduction on the interest paid on education loans. This deduction is not limited to a specific amount and can be claimed for a maximum period of 8 years or till the interest is paid, whichever is earlier.
National Pension Scheme (NPS): An additional deduction of up to Rs 50,000 for contributions to the NPS is available under Section 80CCD (1B), over and above the Rs 1.5 lakh limit under Section 80C.
Income from Life Insurance: Any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempted from tax under Section 10(10D), subject to certain conditions.
Interest Income from Post Office Savings: Interest income up to Rs 3,500 (in case of individual accounts) and Rs 7,000 (in case of joint accounts) in a financial year is exempted from tax under Section 10(15).
Employer’s Contribution to NPS: Under the new tax regime, the employer’s contribution to NPS, superannuation, or EPF exceeding Rs 7.5 lakh is taxable. However, the accumulated interest or appreciation on the employer’s contribution is exempted from tax.
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