ITR filing FY 2023-24 ideas: Top tax deductions you shouldn’t miss under old and new tax regime to reduce tax outgo

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ITR filing FY 2023-24: The deadline for filing your Income Tax Return (ITR) for the fiscal 12 months 2023-24 (evaluation 12 months 2024-25) is July 31, 2024. It’s essential to start making ready your ITR type now. While finishing the shape, guarantee you embody particulars of assorted tax-saving deductions under the Income Tax Act, 1961. Understanding the deductions accessible under each the new and old tax regimes is crucial, in addition to understanding the steps required to declare them.
For salaried people, Form 16 usually comprises the main points of deductions, offered you have submitted all essential info to your employer, says an ET report.If you haven’t, there’s no want to fear—you can nonetheless declare the deductions straight when filing your ITR.

Tax Deductions you can declare under the old tax regime

Sections: 80C, 80CCC, 80CCD (1), 80CCD(1B), and 80CCD (2)

  • The mostly claimed deduction under the old tax regime is under part 80C. To declare this, you want to put money into eligible devices corresponding to tax-saving FDs, PPF and ELSS mutual funds.
  • Sections 80CCC: Deduction for premiums paid in direction of pension plans.
  • Sections 80CCD (1), 80CCD(1B), and 80CCD (2): Deductions for investments in notified pension funds like Atal Pension Yojana (APY) and National Pension Scheme (NPS). Section 80CCD (2) permits deductions for employer contributions to NPS.
  • Government staff can declare up to 14% of their wage (fundamental+DA) under part 80CCD (2), whereas others can declare up to 10%.
  • The complete deduction restrict under sections 80C, 80CCC, and 80CCD (1) is Rs 1.5 lakh. An further Rs 50,000 deduction might be claimed under part 80CCD (1B)

Also Read | Income Tax Return Filing FY 2023-24: Top myths busted – what you ought to have in mind when filing ITR
Sections 80D, 80DD, 80DDB, and 80U

  • Section 80D: Deductions for medical health insurance premiums—up to Rs 25,000 for non-senior residents and up to Rs 50,000 for senior residents.
  • Section 80DD: Deductions for bills incurred for caring for a disabled dependent.
  • Section 80DDB: Deductions for medical bills for specified ailments, up to Rs 40,000 (Rs 1 lakh for senior residents).

Sections: 80E, 80EE, 80EEB

  • Section 80E: Deductions for curiosity paid on training loans.
  • Section 80EE: Additional Rs 50,000 deduction on house mortgage curiosity for properties under Rs 50 lakh, with loans sanctioned between April 1, 2016, and March 31, 2017.
  • Section 80 EEB: Deductions for curiosity on loans taken for buying electrical autos.

Section: 80G
Deductions for donations to specified funds or establishments. Cash donations are restricted to a most deduction of Rs 2,000.
Section: 80GG
Deductions for home lease paid, offered you haven’t got a home lease allowance (HRA) element in your wage.
Sections: 80TTA and 80TTB
Section 80TTA: Deductions up to Rs 10,000 for curiosity earned on financial savings accounts.
Section 80 TTB: Deductions up to Rs 50,000 for senior residents on curiosity earnings from deposits.
Also Read | ITR filing: Important to monitor your earnings tax return standing – how lengthy does I-T division take to course of returns?
Deductions under the new tax regime
The new tax regime gives restricted deductions, together with the usual deduction for salaried staff and deductions under part 80CCD (2) for employer contributions to NPS.
Additionally, household pensioners can declare Rs 15,000 or one-third of their pension, whichever is decrease. Other exemptions embody voluntary retirement under part 10(10C), gratuity under part 10(10), and go away encashment under part 10(10AA). For FY 2023-24, the one change is that the deduction under part 80CCD (2) for the employer’s contribution to the NPS fund is now accessible under the new regime as effectively.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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