ITR Filing 2023: Individual taxpayers are now busy filing their ITRs as only a few days are left for the deadline to end for the purpose. They are scrambling to organise their financial paperwork and maximise their tax savings these days. Apart from the usual tax saving investments, many tax payers might not be knowing that there are several other exemptions and deductions available to claim while filing ITR 2023. Check top 10 lesser-known exemptions that you can claim under various sections of Income Tax Act.
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Preventive Health Check-up
Individual taxpayers can claim a deduction of up to Rs 5000 on preventive check-ups for self, dependent children, spouse, and parents. This can be claimed under Section 80D of the Income Tax Act.
Life Insurance
Taxpayers can claim deduction on amount that was received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempted from tax under Section 10(10D), subject to certain conditions.
Expenses For Dependents
You can also claim deductions on expenses incurred on children, parents, and other dependents under sections ranging from 80C to 80U.
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House Rent Allowance
If you are staying in a rented house, you can claim tax exemption on HRA under Section 10 (13A) of the Income Tax Act. You can claim this exemption on actual HRA received, or actual rent paid less 10 per cent of salary, or 50 per cent of basic pay in metro cities (40 per cent for non-metro), whichever is lower.
Post Office Savings
You can claim deductions on interest up to Rs 3,500 (in case of individual accounts) and Rs 7,000 (in case of joint accounts) in a financial year from post office save schemes.
Tuition Fee of Children
Individual taxpayers can claim a deduction on the tuition fees paid for children’s education under Section 80C. However, you need to know that there are specific rules and limits.
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Leave Travel Concession
You can also claim Leave Travel Concession exemption under Section 10(5) for expenses incurred on travel of an individual and his family when on leave, subject to certain conditions.
Education Loan
You can claim a deduction on the interest paid on education loans under Section 80E. however, this deduction is not limited to a specific amount and can be claimed for a maximum period of 8 years or till the interest is paid, whichever is earlier.
National Pension Scheme
You can claim an additional deduction of up to Rs 50,000 for contributions made to the NPS under Section 80CCD (1B).
Contribution to NPS
In the new tax regime, the employer’s contribution to NPS, superannuation, or EPF exceeding Rs 7.5 lakh is taxable. But you can claim deductions on accumulated interest or appreciation on the employer’s contribution to NPS.
