Claim interest paid on education loan as a deduction
Under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid on an education loan, which was taken to fund higher education, be it your own, your spouse’s, or your children's. You can also claim this deduction if you have taken an education loan for someone else to whom you are a legal guardian.
There is no restriction on the amount that can be claimed under this section. However, this deduction is only available for 8 years starting when the interest payment begins or until the entire interest is paid, whichever is earlier.
Claim deductions on interest income from savings account
Individuals who are less than 60 years of age can claim a deduction of up to Rs 10,000 on interest income they earn from their savings accounts. However, note that this limit is collective, i.e. you can claim a maximum deduction of Rs 10,000 as interest earned from all your savings accounts, irrespective of how many savings accounts you have.
Senior citizens can claim an annual deduction of up to Rs 50,000 on interest income earned from various deposits under Section 80TTB of the I-T Act.
Claim tax deduction for a disabled dependent
If you have a disabled family member who is financially dependent on you, you can claim a tax deduction from your gross income. You can claim expenses undertaken on their medical treatment, training and rehabilitation as an income tax deduction.
If the family member in concern falls under the category of normal disability i.e. has a disability level between 40% to 79%, you can claim a maximum deduction of Rs 75,000 every year. However, if your relative is severely disabled i.e. has a disability level of 80% or more, you can claim a deduction of up to Rs 1,25,000.
However, you need to get a certificate of disability from the appropriate medical authority to claim this deduction.
Claim donations to political parties, and electoral trusts as a deduction
If you have made any contributions or donations to a political party or a registered electoral trust during the year, you can claim 100% of this amount as an income tax deduction under Section 80GGC. However, remember that this donation should not exceed your total income, and you should have proper proof to substantiate this donation. Also, if you have made this donation in cash, you will not be allowed to claim this deduction.
Claim deduction by way of royalty or patent
If you are a writer, author, or scientist who receives an annual sum by way of royalty or patent on their books or inventions, you can claim a deduction on the same. Under Section 80RRB, you can claim an annual deduction of up to Rs 3,00,000, or the total income received, whichever is lower.
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