Did you know about deductionsover and above Rs. 1,50,000
outside of Section 80C of Income TaxAct?
While large section of society is averse to pay taxes, people can always use the rightful deductions to lower their taxes. To put it plainly, a tax
deduction lowers your taxable income, which therefore lowers your tax
liability. One should not misuse these deductions.
In our practical experience, taxpayers at large are well aware about the
deductions under section 80C available to them upto the amount of Rs.
1,50,000 and are investing in one or other mode as discussed in our
PERMISSIBLE DEDUCTIONS below
It may be important to know some of the following lesser known deductions
which are available over and above Rs. 1,50,000totaxpayers:
1. Principal Repayment on housing loan -Additional deduction up to
Rs.150,000*is allowed if the specified conditions are fulfilled.
2. Mediclaim Insurance, Preventive Health Checkup (including routine
medical tests conducted by assessee and his family members) and
amount of medical expenses actually incurred during the year – Rs. 25,000
for members less than 60 years of age and Rs. 50,000 for other members.
3. Interest on loan taken for purchase of Electric Vehicle up to Rs.1,50,000.
4. Investment in National Pension Scheme to the tune of Rs. 50,000 is
permissible as additional deduction.
5. In absence of HRA, rental accommodation is eligible for deduction of lower
of Rs. 5000 per month or 25% of Total Income or Rent Paid in excess of 10%
of Total Income, when assessee do not own any residential property,
subject to filing declaration in Form 10BA.
For more information and conditions of aforementioned deductions, please
refer ensuing paras of our knowledge.
Deductions under Chapter VI of the Income Tax Act, 1961
Life Insurance Premium
You can submit Life insurance Premium paid receipts. These receipts can
be in the name of self/spouse/children. Life cover should be at least 10
times of premium paid.
Contributions by an individual to EPF,PPF,RPF
Passbook copy of PPF (Public Provident Fund) or stamped Provident
Fund contribution receipts. This can be Self/Spouse/children
Deposit in Sukanya SamruddhiAccount Scheme
Sukanya Samruddhi Account passbook or Payment challan/slip
confirming the deposit.
Contribution to notified Unit-LinkedInsurance Plan (ULIP) of MutualFund
Statement of account of the units to the credit of his account or Receipt
of contribution made to ULIP during the financial year.