Tax filing is once again on the cards. You might have already submitted your tax saving and investment declarations to your employer. But, are those the only deductions available to you? The answer is No. You will have a second chance to claim further deductions when you file your tax returns. While doing this, you can also claim those deductions which you might have missed communicating to your employer before 31st March.
Here are six lesser known deductions which you can make use of in the tax filing process:
1) Section 80G
Income tax act provide an opportunity to claim deduction on charities to certain recognized organizations (click here for details). You can claim from 50-100% of such donations u/s 80G of income tax act. Hence, you can check if the list of recognized institutions includes your donated institution too. Keep the receipts handy while filing, though.
2) Section 24
This section is also popularly known as tax benefits under home loan. There is a popular myth that the tax deduction limit under this section is Rs. 1,50,000. However, this limit only applies to self occupied houses. For rented homes, there is no upper limit on the amount that can be claimed. Hence, you can claim as much as interest you are paying on the home loan taken for house which is now rented.
(Also see: Tax saving sections at a glance)
3) Section 80EE
This is a newly introduced section for the home loan buyers. It is an additional tax benefit on home loan available only for the first time home buyers. You can claim up to Rs. 1 lakh through this section. In case you are not able to exhaust this limit, you can even carry forward the balance for the next assessment year. There are limits of Rs. 25 lakhs on home loan sanctioned and Rs. 40 lakhs on value on residential property. This is a boost for all first time home buyers.
4) Section 80DD/DDB
This is also a neglected section. Under section 80dd, you can claim deduction on medical expenses paid for handicapped dependents. Limit for deduction is up to Rs. 50,000 and Rs. 1 lakh depending on severity. Under section 80ddb, costs incurred for treating specified illnesses can be claimed up to Rs, 40-60,000 p.a.
(Also see: Tax benefits u/s 80d, 80dd and 80ddb)
5) Section 80TTA
Until couple of years back, the entire savings bank interest would have been added to the total income and taxed. However, a new section 80TTA says that deduction up to Rs. 10,000 is provided for interest on savings bank account. This can be claimed during tax filing.
6) Section 80GG
This is another lesser known deduction available in income tax act. It is a section available exclusively for those who do not receive HRA from their employer(s). You can claim deduction up to Rs. 2,000 per month. It is also available for self employed people.
Most of the people concentrate on sections like 80C and ignore many other sections. Hence, before filing your taxes, carefully list down all the deductions available in the income tax act for individuals and then take the full benefit of all these sections.