The Union authorities are unlikely to increase past July 31, the tax return filing deadline (ITR). A salaried person, whose total income exceeds the essential exemption limit for a monetary year, must pay his income. Nevertheless, under various sections of the Income Tax Act 1961, taxpayers can declare to reduce their tax liability.
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While there are many deductions corresponding to investments in the Public Provident Fund (PPF) under Part 80C, taxpayers may benefit from some lesser-known tax deductions:
(1.) Deductions for contributions to pension funds: Under this, a person who contributed to an annuity plan of any insurance company in the monetary year 2021-22, can declare a deduction for the amount paid from the total gross income. Each resident and non-resident person under Part 80CCC may claim deductions of up to ₹1.5 lakh for purchasing retirement products.
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(2.) Financial savings account interest deductions: Under Part 80TTA of the IT Act, a citizen who has multiple financial savings accounts can claim deductions of up to ₹10,000 on the interest earned in a monetary year on the financial savings account. Apart from financial savings accounts, these can also be claimed for cooperative financial institution accounts and submit workplace financial savings plans.
(3.) Deductions for medical insurance coverage and preventive health check: Those who purchased for themselves, an accomplice, dependent or children are eligible for this under Part 80D. A taxpayer can declare up to ₹25,000 for medical insurance premium payment if purchased for self, partner, dependent children or mother and father. If the mother and father are elderly residents, a ₹A deduction of 50,000 could be claimed in the monetary year 2021-22.
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(4.) Deductions for paying rent to the elderly: Exemption from home rental allowance (HRA) must be part of the wage package. Under HRA, you may be entitled to at least one of several: the amount of HRA earned as salary; 50% of salary if you rent a house in Delhi, Mumbai, Chennai and Kolkata (40% for non-metropolitan cities); and the rent paid, i.e. 10% of the salary (fundamental part + high cost allowance).
The rental statement and the rental receipts are necessary for this deduction.
(5.) Deductions for donations under Part 80G: These could be claimed if a taxpayer, during a financial year, made a donation – by cheque, draft or money – to an individual or to a registered charity. You can possibly declare a deduction of 50% or even 100% on donations with or without restriction; Also, there is no limit for deductions.
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(6.) Deductions for the purchase of electric automobiles: These can be found under Part 80EEB, published in Funds 2019. Below, a maximum deduction of ₹1.5 lakh is allowed.