Lesser-known tax deductions you’ll be able to declare whereas submitting ITR

Even although the final date for submitting revenue tax returns (ITR) for the present evaluation yr is greater than two months away, it’s suggested that you just begin the method now. Among the numerous causes, submitting ITR upfront offers you ample time to guage all of the deductions, small and large, which you could declare.

Apart from the sought-after deductions underneath Section 80C on insurance coverage premium, equity-linked financial savings schemes (ELSS) and Public Provident Fund (PPF), curiosity on residence mortgage and medical insurance coverage premium underneath Section 80D, there are a bunch of lesser-known deductions that taxpayers usually miss out on.

Mint lists out 4 lesser-known tax deductions:

Medical assessments for prevention

Karan Batra, founder, charteredclub.com, stated only a few individuals declare deduction on preventive well being check-ups. “One can avail as much as ₹5,000 on preventive check-up for self, dependent kids, partner or mother and father under 60 years of age underneath Section 80D. For mother and father 60 years or above, ₹ 7,000 could be claimed,” stated Batra. Preventive well being check-up contains medical assessments which might be undertaken to display and detect any potential ailments.

Earlier, funds made in money in direction of preventive well being check-up was not allowed for deduction, nonetheless the identical is allowed now.

Medical bills of senior citizen mother and father

If your mother and father aged 60 years or above aren’t lined underneath a medical insurance coverage coverage, you’ll be able to nonetheless declare deduction on the cash spent on their medical payments.

Section 80D permits deduction as much as ₹50,000 on medical bills. “Most individuals simply spend ₹50,000 in a month on medicines of their senior citizen mother and father, and but don’t declare deduction on it as a consequence of lack of knowledge,” stated Batra.

It ought to be famous that these bills could be claimed for deduction solely when paid in any mode aside from money.

That stated, if a taxpayer had paid in money as a consequence of unavoidable circumstances, he may nonetheless declare a deduction, stated Sudhir Kaushik, co-founder, Taxspanner.com. “As lengthy as you justify the money mode of fee, you’ll be able to nonetheless declare deduction on them. There may very well be circumstances the place cheque fee couldn’t get by earlier than deadline or there was not another obtainable.”

Section 80C tremendous print

Very few individuals know that there a bunch of deductions which might be obtainable underneath the ₹1.5 lakh ceiling of Section 80C.

First, these servicing a house mortgage can declare a deduction on the principal element of the mortgage as nicely. It is a identified indisputable fact that the curiosity on residence mortgage could be claimed as deduction underneath Section 24 and Section 80EE, as relevant to the taxpayer. The principal a part of the mortgage qualifies for deduction inside the ₹1.5 lakh restrict of Section 80C.

The situation right here is that you just don’t promote the property inside 5 years of possession.

Second, the stamp responsibility paid in direction of registering a home will also be claimed as deduction underneath Section 80C.

Kaushik stated that it’s common for taxpayers to neglect about tax deduction obtainable on reinvested curiosity on National Savings Certificate (NSC). “Interest on NSC is just not paid to the taxpayer and as an alternative will get reinvested. One can declare deduction on the curiosity earned.”

Donations

“Last yr, within the wake of covid-19, many individuals should have made donations that may be claimed as deductions if they’ve receipts,” stated Batra.

Donations made to a fund backed by the central authorities could be totally claimed, whereas these made to a non-public establishment are eligible for 50% deduction.

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