New Delhi. The last date for filing Income Tax Return is coming closer. In such a situation, taxpayers should file their returns as soon as possible . However, they should not hurry while filing their returns.
While filing ITR, taxpayers face the problem of deduction. They do not understand which deductions they can claim under which section.
Today we will tell you which deductions you can avail under which section. Let us tell you that if you have selected the New Tax Regime then you will not get much deduction. On the other hand, those who select the Old Tax Regime can avail maximum deduction.
Salaried persons would have already received proof of tax-saving investment from their employer. This will give them information about all the deductions in their Form-16. They can check their deductions from there.
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Income Tax Act 80C
Tax deduction is also available under Section 80C of the Income Tax Act. Taxpayers can claim a maximum deduction of up to Rs 1.5 lakh in this.
- Deduction can be claimed under investments in this section.
- Taxpayers can also avail deduction on tax schemes like PPF, EPF, NSC, Mutual Funds.
- The highest deduction under 80C is available in the tax savings scheme of mutual funds.
- Deduction can be claimed on life insurance premium.
- In this, deduction is also available on the principal of home loan.
- You can also claim deduction on tuition fees for up to two children.
Income Tax Act 80D
- Deduction can be claimed on health policy premium under Section 80D.
- You can claim deduction of up to Rs 25,000 annually on health policy premium.
- You can claim a deduction of up to Rs 50,000 annually on the premium paid for senior citizen health policy.
