Don't forget to claim these lesser-known tax deductions ITR Filing
October, 28th 2021
Those filing their income tax return (ITR) under the old tax regime often claim the most popular deductions available under Section 80C such as PPF investment, insurance premium, equity-linked savings schemes (ELSS), principal repayment of home loan, tuition fee paid for children and those available under Section 80D that is premium paid for health insurance and home loan interest under Section 24b.
However, other than the above mentioned tax deductions there are many other lesser-known tax deductions, which taxpayers often miss out on. Here we list out some of the lesser-known tax deductions available under various sections of the Income Tax Act 1961.
Under Section 80C
Most of the taxpayers claim deduction on principal repayment on home loan under Section 80C within the overall limit of Rs 1.5 lakh. It may be noted that other than principal repayment, one can also claim the stamp duty paid on property purchase as a deduction under Section 80C.
Experts say it has been observed that taxpayers often forget to claim deduction on reinvested interest on National Savings Certificate (NSC). in NSC, interest is not paid every year instead it gets reinvested. So one can claim deduction on the reinvested interest.
Amid the Covid-19 pandemic, last year many taxpayers have made donations to various NGOs or funds such as PM CARES Fund. One can claim a deduction on these donations under Section 80G if the organisation, to whom the donation is made, is approved by the central government. Also, you must have the receipt of the donation made.
Preventive medical tests
Tax experts say very few taxpayers claim deduction on preventive health check-ups. Under Section 80D, one can claim up to Rs 5,000 as deduction on preventive check-up for self, dependent children, spouse or parents below 60 years of age. If your parents are 60 years or above, Rs 7,000 can be claimed as deduction towards preventive check-ups.
Earlier, payments made in cash towards preventive health check-up was not allowed for deduction, however the same is allowed now.
Medical expenses of senior citizen parents
If your parents are aged 60 years or more and are not covered under a medical insurance policy, then you can claim deduction on the money spent on their medical bills. Under Section 80D, a deduction up to Rs 50,000 can be claimed on medical expenses.
It should be noted that these expenses can be claimed for deduction only if it is paid in any mode other than cash.
Deduction on Education loan interest payment
Under Section 80E, one can claim income tax deduction on the amount of interest paid on home loan taken for the higher study of self, children, spouse. The good thing is that there is no upper cap on the amount of deduction.