Given the urgency of the approaching Income Tax Return (ITR) filing deadline, individuals operating under the old tax regime should proactively identify and claim all eligible exemptions and deductions. Tax experts note that many taxpayers often miss out on significant savings due to a lack of awareness or insufficient documentation. Here’s a breakdown of some key provisions to review before you file:
1. House Rent Allowance (HRA):
If you’re a salaried employee paying rent, you can claim an exemption for HRA. It’s crucial to have proper rent receipts and be aware of the different rules for metro and non-metro cities to maximize this benefit.
2. Section 80D (Health Insurance Premiums):
Don’t overlook the opportunity to claim deductions for health insurance premiums. This applies to premiums paid for yourself, your spouse, children, and parents. The deduction limit is higher if you are paying premiums for senior citizen parents.
3. Section 80GG (Rent Paid Without HRA):
This is a crucial provision for those who pay rent but don’t receive HRA from their employer. To qualify, you must not own a residential property in the city of employment. You must also file Form 10BA to claim this deduction.
4. Section 80E (Education Loan Interest):
Interest paid on an education loan for higher studies (for you, your spouse, or children) is fully deductible. There is no upper limit on the amount you can claim, making this a significant tax-saving opportunity for those with ongoing loan repayments.
5. Section 80TTA / 80TTB (Savings Account Interest):
You can claim a deduction on the interest earned from your savings bank account. This is capped at ₹10,000 for regular individuals (Section 80TTA) and ₹50,000 for senior citizens (Section 80TTB). Taxpayers often forget to claim this, even though the information is readily available in their Annual Information Statement (AIS).
6. Section 80G (Donations):
Donations to specified charitable institutions and funds are eligible for deductions. Ensure you collect and retain proper receipts, as a missing receipt is a common reason for a failed claim.
7. Section 24(b) (Home Loan Interest):
For self-occupied properties, you can claim a deduction of up to ₹2 lakh on the interest paid on your home loan. If you have a joint home loan, make sure all eligible individuals claim their share to maximize the total deduction.
Final Advice
To ensure you don’t “leave money on the table,” experts advise that you carefully review all eligible claims and gather all necessary receipts and proofs before filing your return. While the new tax regime offers a simplified structure, those who continue with the old regime should take full advantage of these available benefits to lower their tax liability.