One of the most popular sections when it comes to
income tax saving is 80C. People are aware of 80C and use this section fully
when it comes to Income tax deductions. But many times taxpayer forgot other
available income tax deductions which can reduce their tax burden. In this
post, we will take a look at less known income tax deductions which can be used
to save more tax.
Under
section 80GG, an individual can claim a deduction for the rent paid. This is
applicable only if you are not getting HRA from your employer. This section is
applicable only for self-employed or salaried. You will be allowed to claim up
to Rs.5000 per month or 25% of total income or actual rent paid in excess of
10% of total income (whichever is less).
Section 80TTA and 80TTB for bank interest
Section
80TTA of the income tax act offers a tax deduction on interest income earned
from deposits or saving bank account. Interest income earned from savings accounts up to Rs.10000 is deductible from the gross income. A new section 80TTB
is introduced this year. The new section is applicable to senior citizens. As
per 80TTB up to Rs.50000 is allowed to be deducted from the gross income of
senior citizens.
Section 80G for Charitable Deduction
Suppose
you have made a donation to the charitable organization or to the certain
relief fund in the last financial year. You can claim the deduction of this amount
under section 80G and save more tax. There is a certain set of
organizations/institutions donation to them that offers a 100% deduction. You can take
advantage of this section.
Interest on Loan is taken for higher education under 80E
Income tax section 80E allows you to claim benefits on
interest paid for education loans. If you have taken an education loan don’t forget
to make a claim for the interest deduction. This deduction is allowed for a maximum
of eight years or till the interest is fully paid.
An
expense incurred for the treatment of specified diseases such as AIDS, Cancer,
Thalassemia etc can be claimed for income tax deduction under section 80 DDB.
The maximum amount permissible under this section is Rs.40000. The limit for
80DDB for the senior citizen is Rs.60000. You will need certificate Form 10-I
from a qualified medical practitioner for this.
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The feature of this Excel The utility is the following:-
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Interest payment for Home Loan of Second House
If
you have taken a home loan for buying a second house you can claim up to 2 Lakh
per year towards interest payment. This as per income tax section 24b. If you
have rented a second house you need to declare income from that. If second
house is rented or not rented you need to declare one house as deemed rented
and others as self-occupied.
The premium for Health Insurance under 80D
You
can claim deduction up to Rs.25000 for health insurance premium paid (for self,
spouse, and children). If health insurance is taken for senior citizen payment
you can claim deduction up to Rs.30000.
Amount Invested in NPS under section 80CCD
Most
of the people are not aware of section 80CCD of NPS. You can invest up to 1.5
in NPS under the section, 80C to avail tax benefits. Apart from this you can invest
an additional Rs.50000 in NPS and get income tax deduction under section 80CCD. This
benefit is available for investment in NPS only.
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The feature of this Excel The utility is the following:-
1) This Excel Utility can prepare automatic Tax Calculation as
per new Finance Budget 2019
2) The Salary Structure as per the Govt and All of
Non-Govt(Private) employee’s Salary Pattern
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee
5) This Excel Utility calculate your House Rent Exemption
Calculation U/s 10(13A)
6) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20 in
New Format
7) Automated Income Tax Form 16 Part B for the F.Y. 2019-20 in
New Format
8) Automated Income Tax Arrears Relief Calculator U/s 89(1) with
Form 10e
