Appearance past phase 80C: have you missed out on any of those tax breaks?
Maximum folks are privy to the concept of deductions from gross total profits available to a taxpayer. you can still declare deductions from one’s gross overall income by investing in avenues distinctive via the government. those deductions are to be had under exceptional sections of the earnings Tax Act, 1961. The most famous deduction is underneath section 80C, but there are different deductions also which can be to be had to you but you would possibly pass over out on them due to lack of expertise.
here’s a listing of deductions that you can claim below special sections of income Tax Act. Make the most of it and decrease your taxable profits to the maximum possible.
Phase 80D: charge of medical health insurance premium
A mediclaim coverage is a ought to nowadays because if you or your own family fall ill or, meet with an accident, your scientific bills ought to wipe out your savings. the amount paid as health insurance top class (mediclaim) is eligible for deduction underneath this phase. you can still take the policy in his or spouse’s name, structured dad and mom and children. in case you are a Hindu Undivided own family (HUF), then the coverage may be taken in the call of any family member.
to claim deduction, you need to first pay the top class by using any mode other than cash. also, the insurer should be accepted through either the principal government, or the coverage Regulatory and improvement Authority of India (IRDAI).
The most deduction quantity that can be claimed beneath this segment by an person or HUF is Rs 60000, but there are numerous sub-limits that one has to take care of.
An individual can avail a most deduction of Rs 25000 for the premium paid for himself, spouse or established youngsters. He can get a further deduction of Rs 25000 for the premium paid for his mother and father. If the individual in whose name the coverage has been taken is a senior citizen ( 60 years or more), then the limit of Rs 25000 in every case could be multiplied to Rs 30000.
As an HUF, you could get a most deduction of Rs 25000 for the top rate paid for any member. If the insured character is a senior citizen then the above maximum restriction of Rs 25000 will be extended to Rs 30000. you possibly can claim a most deduction of Rs 5000 for preventive fitness check-up and the same may be paid in cash too.
80DD: Expenditure on the fitness of disabled individual
This deduction is available to a taxpayer for the expenditure incurred via him at the health and protection of disabled humans — spouse, youngsters, brother and sister — who’re depending on him. in the case of an HUF, they may be any circle of relatives participants. The most deduction quantity that can be claimed below this segment is Rs 75000 per annum. The identical can be improved to Rs 125000 in case the established is stricken by a severe incapacity. to assert this deduction, you need to attach a copy of the certificate issued by way of the medical authority (a neurologist or a civil healthcare professional) along side shape 10-IA when you record your return.
disability consists of autism, cerebral palsy and intellectual retardation. someone with severe disability might be one who has 80 in step with cent or more of any of those disabilities, i.e., a scientific authority has certified that his degree of disability is greater than eighty in line with cent.
section 80DDB: Expenditure on a distinctive ailment
This deduction is available at the expenditure incurred by using a taxpayer at the treatment of detailed diseases for self or partner, and established parents, children, brother and sister. in the case of an HUF, this deduction may be claimed for expenditure made for any member of the family. The deduction quantity can be same to the amount without a doubt expended or Rs 40000, whichever is less. If the character for whom the expenditure is is made is 60 or more, then the limit of Rs 40000 will be taken as Rs 60000 and the same could be taken as Rs 80000 if the age is 80 or extra. when you have obtained any sum from any insurer as repayment for the expenditure incurred by using you, then the quantity obtained as repayment might be reduced from the amount of deduction below this phase.
The list of specific diseases blanketed within the phase is to be had in Rule 11-DD of profits-tax policies. some of them include neurological illnesses, AIDS, malignant cancers, hematological disorders.
phase 80EE: price of hobby on domestic mortgage
This deduction is available to an character for the amount paid as hobby on mortgage taken for the purchase of a residential property. The maximum deduction that can be claimed beneath this segment is Rs 50000 p.a.
there are numerous situations one has to fulfil to avail this deduction:
* The loan need to be taken between 1.four.2016 and 31.three.2017.
* The mortgage quantity should be underneath Rs 35 lakh.
* The fee of the residence need to be below Rs 50 lakh.
* The stated residence property have to be the only one in the character’s name.
in addition, in case you claim deduction beneath this section, then a similar deduction which may be claimed beneath phase 24(b) of the act can’t be claimed for that economic yr.
section 80G: Donations made to certain funds, temples
when you have donated to a fund notified by using the primary authorities underneath this segment, then you might be eligible for deduction of the quantity donated, however it should no longer exceed 10 consistent with cent of the adjusted gross total income. This deduction is likewise available for donations given for protection of temples mosque, church, which are accepted by way of CG.
a number of the funds notified with the aid of the authorities encompass countrywide Defence Fund, Jawaharlal Nehru Memorial Fund, top Minister’s Drought remedy Fund, country wide kids Fund, prime Minister’s country wide alleviation Fund, Swachh Bharat Kosh, easy Ganga Fund, etc. right here is how you could compute your adjusted gross total earnings
coins donations of simplest as much as Rs ten thousand can be made. No deduction could be allowed over and above 10000 if the quantity is paid in coins.
segment 80GG: lease paid for lodging
if you do not receive residence lease Allowance (HRA) as a part of your revenue, or aren’t a salaried worker best then are you able to declare this deduction. it’s far available for the lease paid by the taxpayer for his very own accommodation in a monetary 12 months. A statement in form 10BA must be submitted to avail this deduction. The deduction amount will be the lower one of the following:
lease paid over 10 consistent with cent of profits (simple + D.A.) ..
25 per cent of the total income (earlier than subtracting any deductions).
* Rs 5000 p.m.
when you have a residence (both owned by way of you, your spouse or within the call of your minor infant) at the vicinity in which you are dwelling, then you can’t declare this deduction.
segment 80GGA: Donation to special institutions
when you have donated to an group carrying on scientific research or to a university or university which is approved via the government (underneath 35(1)(ii), 35(1)(iii), 35CCA, 35CCB) for the time being, then the quantity so contributed could be eligible for deduction below this section. Deductions over and above Rs 10000 can be claimed handiest if the contribution has been made via any mode aside from cash. This deduction is not available to the taxpayer who has earnings from commercial enterprise or profession.
phase 80GGC: Donations to political celebration
when you have donated to a political celebration, then you could declare deduction below this segment equivalent to the quantity truly donated. there is no ceiling in this deduction amount that can be claimed underneath this segment. The only circumstance to assert this deduction is that the charge need to be made by way of any mode apart from cash.
segment 80QQB: Royalty profits to creator
in case you are the author of a e book (aside from textbooks for schools and faculties) and have acquired fee in royalty, both in lump sum or otherwise, then you could claim that amount as deduction from your royalty income below this phase. The most deduction that may be claimed when royalty is obtained in lump sum is Rs 300000. while royalty is not acquired is lump sum then the quantity of deduction could be confined to fifteen in keeping with cent of the e-book’s revenue that yr.
80RRB: Royalty earnings from patents
in case you are a patentee and have registered any patent after 1/4/2003 and obtain royalty income for it, then you may declare deduction below this segment for the quantity received as royalty. The maximum deduction that can be claimed beneath this segment is Rs 300000.
80TTA: Interest on savings account
Interest earned on financial savings financial institution account is allowed as deduction. The maximum quantity that can be claimed as deduction below this section is Rs 10000. this doesn’t imply that hobby of up to Rs 10000 is exempted profits; rather you need to show this quantity as your income from different assets to your ITR and then declare deduction below phase 80TTA.