ITR 2024: Discover Hidden Tax-Saving Opportunities!

Hidden Tax Benefits: Leverage Deductions Without Extra Spending

As the due date for filing income tax returns for the assessment year 2024-25 approaches, many taxpayers are scrambling to gather all necessary documents and information. While the timeline for making new investments and expenditures to claim exemptions and deductions has already closed on 31/03/2024, there are still several deductions available for expenditures already incurred during the financial year.?

Many taxpayers are unaware that they can save taxes on these expenses without needing to make additional investments. Here are some of the key deductions available under the old tax regime on expenditures already incurred on fulfilment of conditions prescribed under the relevant provision.

1. Principal Repayment of Home Loan - Section 80C

If you have purchased or constructed a residential house using a housing loan or under a self-financing scheme, the principal amount repaid (whether in EMI or otherwise) is eligible for a deduction under Section 80C. This is within the overall limit of ?1,50,000.

2. Stamp Duty and Registration Fee - Section 80C

When you purchase a residential house, the stamp duty and registration fee paid for the registration of the property can be claimed as a deduction under Section 80C, also within the overall limit of ?1,50,000.

3. Tuition Fees for Children - Section 80C

If you have paid tuition fees for the full-time education of your children in India, you can claim a deduction for the fees paid for up to two children under Section 80C, again within the overall limit of ?1,50,000.

4. Health Insurance and Medical Expenses - Section 80D

Expenses incurred on health insurance or medical expenses for yourself, your family members, and parents can be claimed as a deduction under Section 80D. The aggregate deduction available is up to ?1,00,000.

5. Medical Expenses for Disabled Dependents - Section 80DD

If you are taking care of a dependent spouse, children, parents, brother, or sisters with a disability, you can claim a deduction for the expenditure on their medical treatment, training, and rehabilitation. The deduction is up to ?75,000, and in case of severe disability, it is up to ?1,25,000 under Section 80DD.

6. ?Medical Treatment of Prescribed Illnesses - Section 80DDB

Expenditure incurred on the medical treatment of prescribed illnesses for yourself or a dependent spouse, children, parents, brother, or sisters can be claimed as a deduction under Section 80DDB. The deduction is up to ?40,000/- and if any of these individuals is a senior citizen, the deduction limit increases to ?1,00,000/-.

7. Interest on Education Loan - Section 80E

If you have taken a loan for higher education for yourself, your spouse, children, or a student for whom you are a legal guardian, the interest paid on the loan can be claimed as a deduction under Section 80E.

8. Interest on Loan for Electric Vehicle - Section 80-EEB

If you have purchased an electric vehicle by taking a loan, you can claim a deduction of up to ?1,50,000 on the interest paid on the borrowed funds under Section 80-EEB.

Key Takeaways

To maximise your tax savings, it’s essential to be aware of all available deductions and exemptions with the conditions attached to such deductions and exemptions..

By being aware of these deductions, you can significantly reduce your tax liability and make the most of the benefits available under the old tax regime.

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Disclaimer

The information provided in this article is for general informational purposes only and does not constitute professional advice.