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As the income tax department allows online ITR filing for the assessment year 2024-25, there are deductions in income tax for the taxpayers.
Despite missing the March 31, 2024 deadline to submit the rental agreement to the employer, one can still claim the House Rent Allowance (HRA) tax exemption when filing the ITR and receiving HRA, ensure to include this exemption to reduce the tax burden.
Use investment options like the National Pension System (NPS) & Equity-Linked Savings Scheme (ELSS) under this section to avail tax deductions up to Rs 1.5 lakh.
Several expenses are eligible for deductions under income tax rules such as tuition fees for up to two children, registration charges for a home or property, and principal repayment of home loans. Ensure to include these expenses while filing ITR to maximize tax benefits.
Under the new tax regime, one can invest in the National Pension System (NPS) to save up to Rs 2 lakh on taxes. Apart from a deduction of Rs 1.5 lakh under Section 80CCE, corporate subscribers can enjoy extra tax benefits under Section 80CCD (2) of the Income Tax Act.
One can use payments of premiums for health insurance policies to claim deductions of up to Rs 25,000 under Section 80D. Further, if the premium is paid for a senior citizen who is your parent, a deduction of up to Rs 50,000 can be claimed.
Section 80TTA of the Income Tax Act allows interest earned from savings accounts to be deducted from the tax liability and the maximum deduction allowed is Rs 10,000 in a financial year.
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