ITR filing FY 2023-24 tips: Top tax deductions you shouldn’t miss under old and new tax regime to reduce tax outgo

ITR filing FY 2023-24: The deadline for filing your Income Tax Return (ITR) for the fiscal year 2023-24 (assessment year 2024-25) is July 31, 2024. It’s crucial to begin preparing your ITR form now. While completing the form, ensure you include details of various tax-saving deductions under the Income Tax Act, 1961. Understanding the deductions available under both the new and old tax regimes is essential, as well as knowing the steps required to claim them.
For salaried individuals, Form 16 typically contains the details of deductions, provided you have submitted all necessary information to your employer, says an ET report.If you haven’t, there’s no need to worry—you can still claim the deductions directly when filing your ITR.

Tax Deductions you can claim under the old tax regime

Sections: 80C, 80CCC, 80CCD (1), 80CCD(1B), and 80CCD (2)

  • The most commonly claimed deduction under the old tax regime is under section 80C. To claim this, you need to invest in eligible instruments such as tax-saving FDs, PPF and ELSS mutual funds.
  • Sections 80CCC: Deduction for premiums paid towards pension plans.
  • Sections 80CCD (1), 80CCD(1B), and 80CCD (2): Deductions for investments in notified pension funds like Atal Pension Yojana (APY) and National Pension Scheme (NPS). Section 80CCD (2) allows deductions for employer contributions to NPS.
  • Government employees can claim up to 14% of their salary (basic+DA) under section 80CCD (2), while others can claim up to 10%.
  • The total deduction limit under sections 80C, 80CCC, and 80CCD (1) is Rs 1.5 lakh. An additional Rs 50,000 deduction can be claimed under section 80CCD (1B)

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Sections 80D, 80DD, 80DDB, and 80U

  • Section 80D: Deductions for health insurance premiums—up to Rs 25,000 for non-senior citizens and up to Rs 50,000 for senior citizens.
  • Section 80DD: Deductions for expenses incurred for caring for a disabled dependent.
  • Section 80DDB: Deductions for medical expenses for specified diseases, up to Rs 40,000 (Rs 1 lakh for senior citizens).

Sections: 80E, 80EE, 80EEB

  • Section 80E: Deductions for interest paid on education loans.
  • Section 80EE: Additional Rs 50,000 deduction on home loan interest for properties under Rs 50 lakh, with loans sanctioned between April 1, 2016, and March 31, 2017.
  • Section 80 EEB: Deductions for interest on loans taken for purchasing electric vehicles.

Section: 80G
Deductions for donations to specified funds or institutions. Cash donations are limited to a maximum deduction of Rs 2,000.
Section: 80GG
Deductions for house rent paid, provided you don’t have a house rent allowance (HRA) component in your salary.
Sections: 80TTA and 80TTB
Section 80TTA: Deductions up to Rs 10,000 for interest earned on savings accounts.
Section 80 TTB: Deductions up to Rs 50,000 for senior citizens on interest income from deposits.
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Deductions under the new tax regime
The new tax regime offers limited deductions, including the standard deduction for salaried employees and deductions under section 80CCD (2) for employer contributions to NPS.
Additionally, family pensioners can claim Rs 15,000 or one-third of their pension, whichever is lower. Other exemptions include voluntary retirement under section 10(10C), gratuity under section 10(10), and leave encashment under section 10(10AA). For FY 2023-24, the only change is that the deduction under section 80CCD (2) for the employer’s contribution to the NPS fund is now available under the new regime as well.

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