1. 7 Tax Deductions You Won’t Like to Miss

7 Tax Deductions You Won’t Like to Miss

August 31, 2015 is last date for filling of return for the previous year ...

By: | Published: August 21, 2015 6:40 AM

August 31, 2015 is last date for filling of return for the previous year 2014-15. Taxpayers generally consider popular tax saving options like LIC, PPF and NSC. They tend to pay more taxes as they ignore deductions which are comparatively less popular. Have a look at followings deductions before filing your returns.

1.Upkeep of a disabled person
Sum incurred on medical treatment of a disabled person can be claimed as deduction under Section 80DD. The deduction of Rs. 50,000 shall be available irrespective of amount incurred on the upkeep of such disabled person. However, higher deduction of Rs. 1,00,000 is available in case of disabled person with severe disability. Deduction is available for disabled spouse, children, parents, brothers and sisters of the individual, who are wholly dependent on such an individual for their support and maintenance. Deduction is available only if such disabled person has not claimed any deduction under section 80U.
2.Specified diseases
Expenditure incurred for treatment of Cancer, AIDS and  neurological diseases can be claimed as deduction under Section 80DDB. Deduction can be claimed for medical treatment of taxpayer or his/her dependent spouse, children, parents, brothers and sisters. Maximum deduction of 40,000 can be claimed. However, higher deduction of Rs 60,000 can be claimed if patient is a senior citizen.
3. Disabled person
Disabled person can himself claim a deduction of Rs 50,000 under Section 80U. A higher deduction of Rs 1, 00,000 is available in case of severe disability.
4.Interest from Saving Bank Account
Maximum deduction of Rs 10,000 is available under Section 80TTA for interest credited in saving bank account of individual.
5.Rent paid
Most of the taxpayers are unaware of the fact that they can claim deduction for rent paid for the self-occupied residential house even if they are not getting any House Rent Allowance. Such taxpayers can claim a deduction under Section 80GG in respect of rent paid for residential accommodation. The least of the following amount will be allowed as deduction:

 

  1. Rent paid in excess of 10% of total income;
  2. 25% of the total income; or
  3. Rs 2,000 per month.
6.Loan for higher studies
Interest paid or payable on the education loan can be claimed as deduction if loan is taken by an individual for pursuing higher studies. Deduction is available under Section 80E if loan is taken by individual himself, or for his/her spouse, children or student for whom he/she is a legal guardian.
7.Housing loan
Repayment of principal amount of a housing loan can be claimed as deduction under Section 80C. However, maximum deduction of Rs 1,50,000 can be claimed by a taxpayer under Section 80C. If housing loan is used for self-occupied residential house, interest shall be allowed as deduction to the extent of Rs. 1,50,000. However, there is no cap on deduction for interest on housing loan used for construction or purchase of a house property which is let-out during the year.
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