Income Tax Refund: This time the last date to file Income Tax Return (ITR) is 31 July 2024. While filing ITR, you can claim certain deductions to reduce the income tax return.
How To Boost Tax Refund: With the beginning of the new financial year, the process of filing Income Tax Return (ITR Filing) started. Most of the companies will give Form-16 to the employees by the end of May. At the same time, some self-employed people have completed the process of filing ITR. This time the last date to file Income Tax Return (ITR) is 31 July 2024. While filing ITR, you can claim certain deductions to reduce the income tax return. Many times people are not aware of the deductions under which you can claim deductions.
No exemption of any kind in the new tax regime
There is no benefit of any kind of exemption or deduction under the new tax regime. But in the old tax regime, there are many investment options on which you can avail tax deduction. There are some tax deductions about which people do not have much knowledge but the tax payer definitely gets benefits by claiming under them. Let us know about such options-
National Pension Scheme
You can get the benefit of additional deduction of Rs 50,000 under section 80CCD (1B) on investment in Tier-1 account of NPS. This is different from the benefit of deduction available under section 80C on investments up to Rs 1.50 lakh.
Deduction made on rent payment
Those in the salaried class who do not get the benefit of House Rent Allowance (HRA) and those running their own business can claim tax deduction on rent under section 80GG for the rented house under certain conditions. For example, if your monthly rent is Rs 10,000 and your annual income is Rs 7 lakh. In such a situation, you can avail deduction of Rs 50,000. Let us understand this calculation like this-
Rent paid: Rs 10,000 per month
Total income: Rs 7 lakh annually
10% of income: 7,00,000 x 10/100 = Rs 70,000
Deducting 10% of the rental income: Rs 10,000 – (70,000 / 12) = 10,000 – 5,833 = approximately Rs 50,000 per annum
Medical expenditure
Taxpayers can also avail tax deduction on the medical expenses of their parents. Many people are aware that they can claim tax deduction on health insurance premiums taken for life partner, dependent children and parents. But, if your parents are senior citizens and do not have any health insurance, then you can also avail tax deduction of up to Rs 50,000 under Section 80D on their medical expenses. Apart from this, you can claim a deduction of Rs 5000 under Section 80D on the health related check-up of your life partner and parents.
Deduction on electric vehicle
If you have bought an electric vehicle and taken a loan for it, then you can also get income tax exemption on the interest paid on its loan. Under Section 80EEB, you can claim a deduction of up to Rs 1,50,000 on the interest paid on loan taken from the bank. But the benefit of this deduction will be available only if your loan is approved between January 1, 2019 and March 31, 2023.
Discount on donations
Apart from this, you can also claim income tax deduction on donations made to some organizations. Donations given to these organizations get tax exemption under section 80G. But depending on the type of donation given by you to the registered organization, you get the benefit of different tax deductions.
These are also options for tax reduction
Apart from the tax deductions mentioned above, there are many more tax deduction options under the Income Tax Act, 1961. You can invest in PPF, EPF, ELSS, NSC under section 80C. In Section 24, you can claim deduction on the interest paid on your home loan. Tax deduction is also available on interest paid on loan taken under Section 80E. You can also get the benefit of tax deduction on House Rent Allowance (HRA).
