• Abhijeet Soni

Tax Deductions You Might Be Missing

As a taxpayer in India, you may be eligible for several tax deductions that can help reduce your tax liability. Here are some commonly overlooked tax deductions that you might be missing out on:

1. Medical Expenses: Taxpayers can claim a deduction of up to Rs. 1 lakh for medical expenses incurred for themselves or their dependents. This includes expenses incurred for medical treatment, hospitalization, and critical illnesses.
2. Donations: Donations made to certain charitable organizations and trusts are eligible for a tax deduction under Section 80G of the Income Tax Act. The deduction amount varies based on the type of organization and the donation amount.
3. Home Loan Interest: Taxpayers can claim a deduction of up to Rs. 2 lakh on the interest paid on their home loan for a self-occupied property. For a rented property, the entire interest amount is eligible for deduction.
4. Education Loan Interest: Taxpayers can claim a deduction on the interest paid on education loans for themselves, their spouse, or children. The deduction is available for up to 8 years from the start of loan repayment.
5. Health Insurance Premium: Taxpayers can claim a deduction of up to Rs. 25,000 on the premium paid for a health insurance policy for themselves, their spouse, and dependent children. An additional deduction of up to Rs. 25,000 is available for the premium paid for parents who are senior citizens.
6. National Pension System: Taxpayers can claim an additional deduction of up to Rs. 50,000 for contributions made to the National Pension System (NPS) under Section 80CCD (1B). This is in addition to the deduction of up to Rs. 1.5 lakh available under Section 80C.

It's important to keep accurate records and claim all eligible deductions to minimize your tax liability. Consulting with a tax professional can help ensure that you're taking advantage of all the deductions available to you.