Opted for old tax regime? Here is how to claim various deductions while filing ITR
Those filing their income tax return (ITR) under the old tax regime need to fill in the details of deductions availed under various sections from section 80C to 80U of Income Tax Act, 1961. Details of deductions should be mentioned once you fill in your income details in ITR-1 form. These deductions can be claimed from income before levying of income tax. However, if you have opted for the new, concessional tax regime, you will not be able to claim such tax deductions.
Here is how you can fill in details of tax deductions in the ITR-1 form
Details of tax deductions availed by you can be found in Form-16 if you have already submitted investment details to your employer. Also, the income tax department offers pre-filled information in the tax return forms. But you need to cross-check the information pre-filled in the ITR form as many glitches were found in the new e-filing website of the tax department.
In case you have not submitted your investment details to your employer, then you can claim these deductions at the time of filing income tax ITR.
Once you have filled income from all sources, claim these deductions by mentioning the amount in the correct section of the ITR form. Here are the various deductions available under the old tax regime:
1. Payments for life insurance premium, pension schemes, provident fund
Section 80C of Income Tax Act 1961 allows individuals to claim deduction up to Rs 1.50 lakh in payments towards life insurance premium, provident fund, PPF, investment in ELSS schemes, tuition fees paid for up to two children, National Savings Certificate, housing loan principal repayment etc.
Premium paid for annuity plans and pension plans of insurance companies can also be claimed for deduction under Section 80CCC. Similarly, under Section 80 CCD (1), deduction can be claimed on investments made in pension scheme of the Central Government.
But the total deduction under all the above three sections can not exceed Rs 1.50 lakh.
2. Investment in National Pension System (NPS)
Under Section 80 CCD (1B), an additional deduction up to Rs 50,000 can be claimed on investments made in NPS by the employee. This is over and above the investment made under Section 80CCD (1).
Under Section 80 CCD2, a deduction towards contribution made by an employer to NPS can be claimed. But the extent of tax benefit will depend on the category of employer.
-In case the employer is a PSU, state Government or any other private sector company, the deduction limit is 10% of basic salary plus dearness allowance(DA).
-In case the employer is Central Government, the deduction limit is 14% of basic salary plus DA.
3. Income from house property
Under Section 24(b), an individual can claim tax benefit on interest payment on home loan, home improvement loan on self-occupied property to the tune of Rs 2 lakh. But amount paid towards principal repayment of home loan can be claimed under Section 80C under the overall limit of Rs 1.50 lakh.
However, if you have opted for the new tax regime you can not claim this tax benefit.
4. Payment for health insurance premium
Under Section 80 D, deduction can be claimed on premium paid to purchase health insurance for self and dependent family members and towards preventive health check-ups. However, there are various limits:
For self/spouse or dependent children or patents: Deduction of Rs 25,000 is allowed under Section 80D. In case the claimant or any family members are senior citizens then this deduction can be up to Rs 50,000. For preventive health checkups, only Rs 5000 deduction is allowed under Section 80D. Even, a deduction of Rs 50,000 can be claimed on medical expenditure incurred on a senior citizen under Section 80D.
5. Expenses on maintenance/treatment of disabled dependent
A deduction up to Rs 75,000 can be claimed on expenses made for maintenance or medical treatment of a disabled dependent. But in case of severe disability (80% or more), the deduction can be up to Rs 1.25 lakh.
6. Payment for medical treatment
Under Section 80 DD (1B), a deduction up to Rs 40,000 can be claimed for expenses made on medical treatment of self and dependent family members for specified diseases. This deduction limit will increase to Rs 1 lakh in case any of the family members is a senior citizen.
7. Interest paid on education loan
Under Section 80E, an individual can claim deduction on interest payment on education loan taken for the higher education of seld, or dependent child or spouse. Worth mentioning here is that there is no upper limit on this deduction.
8. Additional deduction on home loan interest payment
Under Section 80EE, an additional deduction up to Rs 50,000 can be claimed towards interest payment made against the loan taken for the acquisition of residential house property by first-time home buyers. Only loans taken between April 01, 2016 to March 31, 2017 are eligible for this deduction.
Under 80EEA, a deduction up to Rs 1.5 lakh is available on interest payments made on home loan taken for buying a residential house property for the first time where the loan is sanctioned between April 01, 2019 and March 31, 2022.
Worth mentioning here is that the above two deductions are over and above the deductions available under Section 24b.
9. Deduction on house rent payment for those not getting HRA
Under Section 80GG a salaried individual can claim deduction on house rent payment even if he is not getting house rent allowance (HRA) from his employer. This deduction is also available for self-employed individuals. But the maximum deduction that can be claimed under this section is Rs 60,000.
10. Interest paid on loan taken to purchase electric vehicle
In order to promote the usage of electric vehicle, the government is allowing a deduction up to Rs 1.5 lakh under Section 80EEB towards interest paid on loan taken for the purchase of electric vehicle. But the loan must have been taken between April 01, 2019 to March 31, 2023.
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