If you are filing a tax
return? You can claim the deduction you can afford
An income tax return (ITR)
is basically a document that is filed under the provisions of the Income Tax Act,
detailing one's income, profit and loss and other exemptions as well as tax
refunds or tax liability. Chapter VI-A of the Income-tax Act contains various
sub-sections of section 80 which allows an appraiser to claim exemption from
the total income due to various tax-saving investments approved expenses,
grants, etc.
Such exemptions allow an
assessor to reduce the amount of tax payable. Since the current tax filing
involves earning money for the financial year 2010-2017, all the exemptions
approved in that financial year must be examined. Paid employees can take
advantage of several exemptions when filing income tax returns.
Here are 9 deductions you
can claim on your salary return:
1. Standard deduction
Standard deduction. Salary
income is available for Rs. 50,000 employees. As a result of the standard
deduction, the salaried person will be able to claim the flat deduction that
will be given to his / her job from his / her income. No proof is required to
claim this deduction.
You may also like: Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E in Excel from the F.Y.2000-01 to F.Y.2020-21
2. Home Rent Allowance (HRA)
deduction
Rent expenses are expenses
incurred by a business for the use of property or location in an office, retail
space, factory, or a storage area. Rental costs are a kind of fixed operating
cost or an exploitation cost for a business, as opposed to a variable cost.
Rent costs often include the option of renewal subject to a one- or two-year contract between the tenant and the lease or landlord and tenant. Salary
earners living in rented houses can claim a house rent allowance (HRA) to cover
their taxes under the Income Tax Act or completely. The deduction available is
the lowest of the following amounts:
Original HRA has been obtained
50% of those living in metro
cities [private salary + DA] (40% of non-metro) or
The actual rent paid less than 10% of the basic salary + DA
You may also like: AutomatedIncome Tax House Rent Exemption Calculator U/s 10(13A) in Excel
3.Deduction under section 80C
Anyone can claim a rebate of
Rs 1.5 lakh from your total income under Section 80C. Taxpayers can deduct up
to Rs 1,50,000 from their total taxable income and it is available to
individuals and HUFs. Some investments are eligible for exemption under Section
80C of the Income Tax Act. Click here to read clearance U / s 80C
4. Exemption under section CCD
The 80 CCD section deals
with exemptions received for individuals against contributions to the National
Pension Scheme (NPS) or the Atal Pension Scheme (APY). Employers' contributions
to NPS also fall under this category. NPS is an informed pension scheme of the
Central Government
Section 60 CCD (1) deals
with tax exemptions for all assessors appointed by the Government, any other employer
or self-employed person. Arrears are limited to a maximum of 10% of salary
(basic + money allowance) for employees and 10% of gross income for
self-employed taxpayers. The discount limit cannot exceed one lakh rupees in a
financial year.
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Section 80CCD (2) deals with the employer's contribution to an employee's NPS fund. Employees will be able to deduct this amount as your department’s 80 CC (2). The amount of deduction is limited to 10% of the employee’s salary.
5. Exemption under section 80D
An individual can claim a discount of up to Rs 25,000 for self, wife and dependent children insurance. Additional discount for parental insurance is available up to Rs 25,000 if the age is less than 60 years or up to Rs 30,000 if the parents are over 60 years of age.
6. Exemption under Section 80 TTA
Exemption from the Savings
Account from any Bank or Post Office gets a rebate of Rs 10,000 on interest
income. This deduction is available to any individual and HUF.
This discount on interest
earned is allowed:
With a bank savings account
Co conducts banking business
from a savings account of a cooperative society
You may also like: Automated Income Tax Form 16 Part A&B and Part B in Excel for the F.Y.2020-21[This Excel Utility can prepare One by One Form 16 Part A&B and Part B as per new and old tax regime U/s 115 BAC]
7. Exemption under section 80GG
Available for payment of
80GG discount if HRA is not accepted. The place of employment of the taxpayer,
wife or minor child should not have residential accommodation. The taxpayer
should not have self-occupied residential property elsewhere. The taxpayer must
live between paying rent and rent. The discount is available to all individuals
The lowest of the following
discounts are available:
Adj rent total minus 10%
adjusted total income
5,000 5,000 per month
25% of total gross income
8. Exemption under section 80EE
This discount is in respect
of interest on residential property, a deduction is only available to individuals under this category.
The cost of the house must
be less than 50 lakhs. The loan taken for the house must be Rs 35 lakh or less
The loan must be approved by
a financial institution or a housing finance company. The loan approved between
01.04.2016 to 31.03.2017. As of the date of loan approval, no other home
property is owned by the individual.
9. Exemption under Section 80U
A deduction of Rs.5,000 is
available for a resident who is suffering from a physical disability (including
blindness) or mental retardation. In case of severe disability, one can claim a
rebate of Rs 1,25,000.
