New Delhi: The last date to file Income Tax Returns (ITR) is tomorrow. Taxpayers following the old tax regime should carefully check all available exemptions and deductions to avoid paying extra tax.
Experts say many people miss out on benefits due to lack of documents or awareness.
Key Deductions to Claim
House Rent Allowance (HRA): Employees living in rented houses can claim HRA. The amount depends on whether you stay in a metro or non-metro city. Rent receipts are required.
Section 80D – Health Insurance Premium: Premium paid for health insurance of self, spouse, children, and parents is deductible. Higher limits apply if parents are senior citizens.
Section 80GG – When HRA is Not Received: Employees without HRA but paying rent can claim this. They must file Form 10BA and should not own a house in the same city.
Section 80E – Education Loan Interest: Interest paid on education loans for self, spouse, or children is fully deductible, with no upper limit.
Section 80TTA / 80TTB – Savings Account Interest: Interest up to ₹10,000 (individuals) and up to ₹50,000 (senior citizens) from savings accounts is deductible.
Section 80G – Donations: Donations to approved institutions are eligible for tax benefits. Many taxpayers lose this benefit by not keeping receipts.
Section 24(b) – Home Loan Interest: On self-occupied property, up to ₹2 lakh interest on home loan can be claimed. Experts note that in joint loans, often only one person claims, reducing benefits.
Why It Matters?
Tax experts advise taxpayers to check all exemptions carefully and keep receipts safe. While the new regime does not allow such deductions, the old regime can significantly lower tax burden if used properly.
