Tax planning is more than just saving under Section 80C. The Income Tax Act offers multiple deductions that can reduce your tax liability significantly. Many taxpayers miss out on these benefits simply due to lack of awareness. Let’s explore 10 essential deductions that you might be missing for FY 2024-25.
1. Section 80C – The Standard Saver (₹1.5 Lakh Limit)
Eligible Investments:
– Employee Provident Fund (EPF)
– Public Provident Fund (PPF)
– Life Insurance Premiums
– ELSS Mutual Funds
– 5-year Tax-saving FDs
– Principal on Home Loan
Max limit: ₹1.5 lakh combined with all 80C options.
2. Section 80D – Medical Insurance Deduction
– ₹25,000 for self/family (below 60)
– ₹50,000 for senior citizen parents
– Additional ₹5,000 for preventive health check-ups (within 80D limit)
3. Section 80E – Education Loan Interest
– Unlimited deduction on interest for 8 years
– Loan must be for higher education (self/spouse/children)
4. Section 80EEA – Home Loan Interest for First-Time Buyers
– Additional ₹1.5 lakh interest deduction
– Home value < ₹45 lakh and loan sanctioned between April 2019 – March 2022 (valid for ongoing loans)
5. Section 80G – Donations to Charitable Trusts/Relief Funds
– Eligible donations qualify for 50% or 100% deduction (with/without qualifying limit)
– Use the 80G certificate and check eligibility before claiming
6. Section 24(b) – Home Loan Interest
– Deduction of ₹2 lakh on housing loan interest (self-occupied property)
– Unlimited for rented properties (within overall loss from house property limits)
7. House Rent Allowance (HRA)
– Deduction even if employer doesn’t give HRA (under Section 80GG)
– Based on rent paid, city of residence, and salary
– Claim via rent receipts and PAN of landlord (if rent > ₹1 lakh/year)
8. Section 80TTB – Senior Citizens’ Interest Income
– Deduction of ₹50,000 for senior citizens on interest from savings, FDs, etc.
– Use ITR-1 or ITR-2 to claim depending on income sources
9. National Pension System (NPS) – Section 80CCD(1B)
– Additional ₹50,000 deduction over and above 80C
– Great for long-term retirement planning
– Contribution via Tier-1 NPS account
10. Electric Vehicle Loan Interest – Section 80EEB
– Deduction up to ₹1.5 lakh for interest on EV loan
– Loan must be sanctioned between 1 April 2019 and 31 March 2023
⚠️ Common Mistakes While Claiming Deductions
– Not keeping receipts/proof
– Claiming under wrong section
– Forgetting to declare in employer-provided Form 12BB
– Not linking PAN/Aadhaar
💡 Pro Tips to Maximize Deductions
– Use a mix of 80C, 80CCD(1B), and 80D for best savings
– Keep proper documents and Form 16 cross-check
– Use the Income Tax utility or portal to check eligible schedules
FAQs
Q1. Can I claim both 80C and NPS deductions?
Yes. 80C covers up to ₹1.5 lakh, and NPS under 80CCD(1B) gives an extra ₹50,000.
Q2. What if I forgot to submit proofs to my employer?
You can still claim the deductions directly in your ITR.
Q3. Can rent deduction be claimed without HRA?
Yes. Use Section 80GG, provided you don’t receive HRA and meet other conditions.
Q4. Are all donations eligible under 80G?
Only specified institutions are eligible. Check the donation receipt and 80G approval number.
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