Those who have opted for the new, concessional tax regime will not be able to claim such tax deductions.
Here is a look at how those who have opted for the existing income tax regime can fill in details of tax deductions in the ITR-1 form.
Where to find details of deductions
Usually, if you have mentioned these deductions to your employer to lower the tax deducted on salary, then information on these deductions will be available in your Form 16. Further, the income tax department offers pre-filled information in the tax return. However, an individual is required to cross-check the information due to the many glitches on the recently launched e-filing website of the tax department.
If you have missed out on sharing the above-mentioned details to your employer, then you can claim these deductions at the time of filing income tax return (ITR).
These deductions will be claimed once you have filled in the income details from all sources. Do claim these deductions by mentioning the amount in the correct section of the ITR form. Read on to know how to fill in the details of deductions in the ITR-1 form.
- Sections 80C, 80CCC, 80CCD(1), 80CCD(1B) and 80CCD(2)
One of the most commonly availed deductions is under section 80C. Along with this one can claim deduction under sections 80CCC and 80CCD (1). The latter ones are available on the investments made in pension funds notified by the government such as National Pension System (NPS), Atal Pension Yojana (APY) etc. The maximum aggregate deduction that can be claimed under the three sections is Rs 1.5 lakh in a financial year.
Under section 80C, deductions can be claimed for specified investment/expenditures made such as investments in EPF, PPF, principal repayment of housing loan etc.
Investments and expenditures that can be claimed under section 80C
Additional deduction of Rs 50,000 is available for the investment in NPS under section 80CCD (1B). This deduction is available over and above the section 80C deduction. Thus, an individual can claim a total deduction of Rs 2 lakh in financial year.
How to save tax via NPS by investing Rs 50,000 additionally
Additional deduction of 10% of your basic salary can be claimed if your employer makes contribution to NPS on your behalf. This deduction can be claimed under section 80CCD(2).
How NPS can get you tax deduction of up to Rs 9.5 lakh
- Sections 80D, 80DD 80DDB and 80U
Section 80D offers deduction on the premium paid on a health insurance policy for maximum up to Rs 25,000 in a financial year. Further, an individual can claim deduction for preventive health check-ups of Rs 5,000. However, it comes within the overall limit allowed under section 80D. The total amount paid on preventive health check-ups for self and parents cannot exceed Rs 5,000.
In case of your senior citizen parents, maximum deduction of Rs 50,000 is available for health insurance premium paid. However, if your senior citizen parents are not covered under any health insurance policy, then deduction can also be claimed for the medical expenditure incurred.
How medical bills of your senior citizen parents can help you save tax
Maximum deduction that can be claimed under Section 80D
|Nature of the amount spent||Age of family Member||Age of family Member||Age of the parents||Age of the parents|
|Below 60 years||Above 60 years||Below 60 years||Above 60 years|
|Medical Insurance||Rs 25,000||Rs 50,000||Rs 25,000||Rs 50,000|
|Health Check-up*||Rs 5,000||Rs 5,000||Rs 5,000||Rs 5,000|
|Medical Expenditure||–||Rs 50,000||–||Rs 50,000|
|Maximum deduction||Rs 25,000||Rs 50,000||Rs 25,000||Rs 50,000|
*Aggregate deduction in respect of preventive health check-up shall not exceed Rs. 5,000
How visit to medical lab can help you save tax
Expenses made for taking care of disabled person can be claimed as deduction under section 80DD. Dependent individual for which deduction under this section can be claimed includes spouse, any child (son/daughter), parents (except for in-laws) and siblings (brother/sister). The maximum deduction amount available depends on the nature of disability. If the dependent individual has disability of 40%, then you can claim up to Rs 75,000 as deduction. On the other hand, if the dependent has severe disability of at least 80 per cent, then the maximum deduction available is Rs 1.25 lakh.
However, if a disabled individual himself wants to claim the deduction, then such deduction can be claimed under section 80U. However, if this deduction is claimed, then any other individual cannot claim deduction on your behalf under section 80DD.
Section 80DDB covers expenditure for the treatment of specified diseases either for self or a dependent. The maximum deduction allowed under this section depends on the age of the person on whom money is being spent for the treatment. Maximum deduction of Rs 40,000 can be claimed. In case of senior citizen, maximum deduction of Rs 1 lakh is allowed.
Also Read: How to save income tax via medical expenditure
Do keep in mind that while claiming deductions under section 80DDB, the maximum amount of deduction available will be reduced by the amount of reimbursement of treatment cost, if any, received from the employer or insurance company.
- Section 80E: Interest on loan taken for higher education
Interest paid on the education loan is eligible for deduction. As per tax laws, there is no limit on the maximum amount claimed as deduction. However, this deduction is available up to 8 years starting from the year in which interest payment began or until interest is paid in full. Deduction can be claimed for education loan taken for higher education of self, spouse or children.
- Interest payment on home loan
Additional deduction of Rs 50,000 can be claimed under section 80EE if the following conditions are satisfied:
a) The loan taken by you was sanctioned between April 1, 2016 and March 31, 2017;
b) The home loan taken does not exceed Rs 35 lakh;
c) The value of house purchased by you does not exceed Rs 50 lakh;
d) The house for which loan is taken is your first house.
Similarly, individual can claim additional deduction of Rs 1.5 lakh under section 80EEA if the following conditions are satisfied:
a) If the loan has been sanctioned between April 1, 2019 and March 31, 2021;
b) The stamp value duty of house does not exceed Rs 45 lakh;
c) Individual does not own any residential property on the date of sanction of loan.
- Section 80EEB: Deduction in respect of purchase of electric vehicle
Deduction is available on the interest paid for the loan taken for buying an electric vehicle. An individual can claim maximum deduction of Rs 1.5 lakh in a financial year. The loan must be sanctioned between April 1, 2019, and March 31, 2023, to be eligible for claiming this deduction.
- Section 80G: Donation to eligible funds, charitable funds etc.
Donations made to specified funds and/or institutions notified by the income tax department are eligible for deductions under section 80G. Remember, the amount of deduction that can be claimed by you will depend on the type of institution to which you have given your donation.
While claiming this deduction, you are also required to fill in the details of the institutions to which donations have been made in the additional tab ’80G’. The deduction can be claimed as either 100 per cent or 50 per cent of the amount donated subject to ‘With’ or ‘Without’ the upper limit.
All you need to know about claiming 80G deduction
If you have made a donation in cash, then the maximum amount you can claim as a deduction is Rs 2,000.
Deduction under section 80GG is available if you have paid rent in FY 2020-21 but were unable to claim tax benefit under HRA. This is because one must receive HRA from his/her employer to be eligible to claim tax-exemption under HRA.
Least of the following amount is available as deduction under this section:
a) Rent paid in excess of 10 percent of total income
b) 25% of the total income
c) Rs 5,000 per month
Here total income is calculated as gross total income minus long-term capital gains, short-term capital gains where securities transaction tax has been paid and deductions available under sections 80C to 80U except for 80GG.
There are certain conditions attached while claiming this deduction. To claim the deduction, you should not own a house either in your name, spouse, minor child or as member of Hindu Undivided Family (HUF), at the place of employment and at the place of residence.
- Section 80TTA: Income from interest on saving bank account
Interest earned on your savings account balance either held with a bank or post office is taxable. However, you can claim deduction up to Rs 10,000 on the interest earned either from your savings bank account or post office savings account or from both. This deduction can be claimed only by individuals whose age is below 60 years.
- Section 80TTB: Interest on deposits in case of senior citizens
Senior citizens having interest income from deposits with bank and/or post office can claim deduction of up to Rs 50,000 under section 80TTB. The interest covered under this section includes interest received from savings account, fixed deposit and from post office schemes such as Senior Citizens’ Savings Scheme (SCSS), Post office Savings Account and so on.
Everything to know about Rs 50,000 deduction for seniors