With just a week to go before the July 31 deadline for filing your income tax return, the last-minute ITR filing rush is certainly on.
All those who have been lazy enough to not file it till dare must now be rushing to file ITR and perhaps also looking for ways to minimise their tax outgo over and above the usually popular ones like health and life insurance, PPF, ELSS, education loan, home loan, etc.
Well, if you too are among this group, then let us bring to you some lesser-known tax deductions which you can claim while filing your ITR before the fast-approaching July 31 deadline.
Lesser-known Tax Deductions You Can Claim
1.Additional tax saving with NPS
Not many taxpayers are aware of this additional tax deduction available with NPS. Individual taxpayers can save additional tax by investing up to Rs 50,000 in NPS tier 1 account, under 80CCD(1B).
This is over and above the Rs 1.5 lakh tax deduction benefit available under Section 80C. So, this additional investment in NPS can take your total benefit from NPS to Rs 2 lakh.
2.Interest earned from savings account
Read More: Tecno CAMON 20 Premier 5G smartphone launched – Check price and features
More often than not, taxpayers are unaware of this benefit available under Section 80TTA. This section makes interest income of up to Rs 10,000 p.a. earned from savings accounts tax-free, beyond which the interest income becomes taxable as per the tax slab of the depositor.
3.Interest paid for loans taken to purchase e-vehicle
Given the environmental benefits of EVs and their growing popularity, the government has been encouraging citizens to buy electric vehicles. One of the steps taken by the government towards its vision of making electric vehicles (EVs) affordable to consumers and making it an additional incentive for people to buy them, is by providing a deduction of up to Rs 1.5 lakh per year under section 80EEB, for interest payable on loan availed to purchase EVs.
The individual taxpayer may have an electric vehicle for personal use or for business use. To avail this deduction, the loan must have been taken between April 1, 2019, and March 31, 2023.
4.Specific eligible donations
This might not be a surprise for many. Yes, doing the noble act of donating can help you save tax.
If you make any donations to an approved charitable institution, you can claim a deduction under Section 80G of the income tax act. Under Section 80G, any donations made in cash exceeding Rs 2,000 will not be allowed as a deduction. Donations above Rs 2,000 should be made in any mode other than cash to qualify under Section 80G.
Depending on the institution to which you donate, tax deductions can be 50% or 100% of the donation amount but to a maximum of 10% of the adjusted gross total income of the taxpayer.
And that’s not all. Under Section 80GGA, deductions for donations made towards scientific research or rural development are allowed. This tax benefit is allowed to all assessees except those who have an income (or loss) from a business and/or a profession. In this case, the donations can be made in the form of a cheque, a draft, or cash. However, cash donations over Rs 2,000 are not allowed as deductions. 100% of the amount donated or contributed is eligible for deductions.
5.Medical expenses of specified diseases for self/dependent & of disabled dependent
Another tax deduction you can claim is by utilizing the benefit under Section 80DDB. This section allows taxpayers to claim deductions for treatment of eligible diseases as specified in Rule 11DD of the Income Tax Act for self or any of their dependents. Dependents include spouse, children, parents and siblings.
Also, if, as a taxpayer, you are looking after disabled dependents, you can claim a tax deduction on expenses under Section 80DD. This deduction is offered to help taxpayers take care of their disabled family member who is dependent on them. Click here to know about this in detail.
