18 Most common Deductions to claim in Income Tax Return

1. Section 80C: is highly favored by taxpayers as it allows a maximum deduction of Rs.1,50,000 per year from the total income. Investments and expenditures eligible for deductions under Section 80C include Tuition Fee, life insurance premiums, ELSS funds, NPS schemes, ULIPs, tax-saving fixed deposits, PPF (Public Provident Fund) accounts, senior citizen savings schemes, National Savings Certificates, Sukanya Samriddhi Yojana, certain payments for purchase/construction of residential property, tuition fees, and Post Office Time Deposit Rules, among others.

Read Detailed explanation: https://taxupdates.cagurujiclasses.com/section-80c-detailed-explanation/#more-365

2. Section 80CCD (1B): Investments up to Rs. 50,000 in NPS (National Pension Scheme).

Read Detailed explanation: https://taxupdates.cagurujiclasses.com/section-80ccd-deduction-for-contribution-to-pension-funds-nps-ayp-by-employee-employer-and-voluntary-contribution/

3. Section 80GG: Deduction on house rent paid when HRA (House Rent Allowance) is not received. The deduction is calculated based on different factors such as rent paid minus 10% of adjusted total income, Rs. 5,000 per month, or 25% of adjusted total income. Read Detailed Explanation: https://taxupdates.cagurujiclasses.com/section-80gg-deduction-of-rent-paid/
4. Section 80E: Deduction on interest on education loans taken for higher education, with no restriction on the amount claimed. The deduction is available for a maximum of 8 years or until the entire interest is repaid, whichever is earlier. Read Detailed Explanations: https://taxupdates.cagurujiclasses.com/section-80e-deduction-of-interest-on-education-loan/
5. Section 80D: Deduction on medical insurance premiums, with different limits based on the insurance coverage for self, spouse, dependent children, and parents. Additional deductions are available for preventive health check-ups. Read Detailed Explanations: https://taxupdates.cagurujiclasses.com/section-80d-deduction-in-respect-of-medical-insurance-premium/
6. Section 80DD: Deduction for medical treatment and maintenance of a dependent with a disability, based on the severity of the disability. Read Detailed Explanations: https://taxupdates.cagurujiclasses.com/section-80dddeduction-in-respect-of-expenditure-on-medical-treatment-of-a-dependent-being-a-person-with-disability/#more-726
7. Section 80DDB: Deduction for specified medical treatment expenses for oneself or dependents, with higher limits for senior citizens. Read Detailed Explanations: https://taxupdates.cagurujiclasses.com/section-80ddb-deduction-in-respect-of-expenditure-on-medical-treatment-of-specified-diseases/
8. Section 80U: Deduction for individuals with disabilities, based on the level of disability. Read Detailed Explanations: https://taxupdates.cagurujiclasses.com/section-80u-deduction-for-person-with-disability/#more-1544
9. Section 80G: Deduction for donations made to specified social causes, subject to certain conditions. Read Detailed Explanations: https://taxupdates.cagurujiclasses.com/section-80g-deduction-for-donation-to-charitable-institutions/#more-1534
10. Section 80GGC: Deduction for donations made to political parties or electoral trusts.Read Detailed Explanation:https://taxupdates.cagurujiclasses.com/deduction-in-respect-of-contributions-given-by-any-person-to-political-parties-80ggc/
11. Section 80RRB: Deduction for income received from the royalty of a patent. Read Detailed Explanation:https://taxupdates.cagurujiclasses.com/deduction-in-respect-of-royalty-on-patents-section-80rrb/
12. Section 80TTB: Deduction for interest income on deposits/saving bank etc. for senior citizens upto Rs.50000 Read Detailed Explanation:https://taxupdates.cagurujiclasses.com/1829-2/
13. Section 80TTA: Deduction for interest income from savings accounts upto Rs.10000. Read Detailed Explanation: https://taxupdates.cagurujiclasses.com/section-80tta-deduction-for-interest-income/
14. Section 80EEB: Deduction for interest paid on loans taken to purchase electric vehicles.Read Detailed Explanation: https://taxupdates.cagurujiclasses.com/deduction-in-respect-of-purchase-of-electric-vehicle-evs-80eeb/
15. Section 16
    • (i): Standard Deduction of Rs. 50,000 or the amount of salary, whichever is lower.
    • (ii): Deduction for entertainment allowance, limited to actual expenditure or 1/5th of salary, whichever is less (up to Rs. 5,000).
16. Section 23/24: Deduction for municipal taxes on property paid when receiving rent.
17. Section 24: Deduction for interest on borrowed capital, subject to specified conditions.
18. Section 57: Deduction for family pension, calculated as 33 1/3% of the pension or Rs. 15,000, whichever is less.

It is essential to understand the rules and maintain supporting evidence before claiming any expenditure. Happy filing and may you benefit from tax savings.

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