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ITR filing: As deadline approaches, 6 useful deductions taxpayers can claim

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The Union government is unlikely to extend beyond July 31, the deadline to submit income tax returns (ITR). A salaried individual, whose total income exceeds the basic exemption limit for a financial year, should pay his returns. However, under various sections of the Income Tax Act, 1961, taxpayers can claim to lower their tax liabilities.

Also Read | Income Tax Day 2022: Why IT department celebrates July 24 as ‘Aaykar Diwas’

Though there are popular deductions such as investments in Public Provident Fund (PPF) under Section 80C, taxpayers can also avail some lesser-known tax deductions:

(1.) Deductions for contribution to pension funds: Under this, an individual who has contributed to any annuity plan of any insurance company in the financial year 2021-22, can claim a deduction for the amount paid from gross total income. Both resident and non-resident individuals, under Section 80CCC, can ask for deductions of up to 1.5 lakh for buying pension products.

Also Read | Last day to file income tax return is a bank holiday: What does this mean?

(2.) Deductions for interest on savings account: Under Section 80TTA of the IT Act, a citizen, who has multiple savings accounts, can claim deductions of up to 10,000 on the interest earned in a financial year on the savings account. Besides savings accounts, these can also be claimed for co-operative bank accounts, and post office savings schemes.

(3.) Deductions for medical insurance and preventive health check-up: Those who have purchased for themselves, partner, dependent or children are eligible for this under Section 80D. A taxpayer can claim up to 25,000 for paying medical insurance premium if purchase for oneself, spouse, dependent children or parents. If parents are senior citizens, a 50,000 deduction can be claimed in the financial year 2021-22.

Also Read | Income Tax Returns: How to file ITR online? Here’s a step-by-step guide

(4.) Deductions for paying rents to parents: The House Rent Allowance (HRA) exemption should be a part of the salary package. Under HRA, you will be entitled to at least one of the following: The HRA amount received as salary; 50 per cent of the salary if you rent a house in Delhi, Mumbai, Chennai and Kolkata (40% for non-metro cities); and rent paid, i.e. 10% of the salary (basic component + dearness allowance).

Rent agreement and rent receipts are mandatory for this deduction.

(5.) Deductions for donations under Section 80G: These can be claimed if a taxpayer, during a financial year, gave donation – through cheque, draft or cash – to any approved body or charitable organisation. You can claim a 50% or even 100% deduction on donations with or without restriction; also, there is no maximum limit for the deductions.

Also Read | Income tax return: What is TDS refund? All details and guide to claim it

(6.) Deductions for purchasing electric vehicles: These are available under Section 80EEB, introduced in Budget 2019. Under this, a maximum deduction of 1.5 lakh is permitted.



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