Lower your taxable income up to INR 5 Lacs by using these unconventional chapter VI-A deductions for F.Y. 2021-22 & F.Y. 2022-23. This article is a detail guide on deduction type, section, who can claim and description.
Also, F.Y. 2022-23 has begun and it is time for tax payers to plan and evaluate their tax saving options for this F.Y. 2022-23. Proactively planning on tax saving based on estimated income will benefit the tax payers by reducing his/her tax liability. These Tax saving option will benefit salaried employee, businessman and person earning from any other sources of Income.
For details reference from Act refer >> https://incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
Unconventional chapter VI-A deductions to Lower your taxable income up to INR 5 Lacs
| S. No | Person who can claim deduction under this section | Reference Section | Maximum Deduction allowable | Details | Deduction Type (Investment, Expense or Income) |
|---|---|---|---|---|---|
| 1 | Individuals | Section 80C | INR 1,50,000 | Deduction for investment made in Unit linked insurance plan (ULIP), Tuition Fees of Children, Tax Saving Fixed Deposits for 5 years, Public Provident Funds, Life Insurance premium, Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, National saving certificate (NSC), Sukanya Samriddhi Yojana (SSY), investment in mutual funds and savings bond, NABARD Rural Bonds, Post Office time deposit scheme of 5 years, principal repayment of housing loan. | Investment and Expense based deduction. |
| 2 | Individuals | Section 80CCD (1B) | INR 50,000 | This deduction can be claimed by Salaried Individuals as well as self Employed Individuals. Deduction is allowed for contributions made towards NPS. | Investment based deduction |
| 3 | Individuals & HUF | Section 80D | INR 25,000 (INR 50,000 in case senior citizen is involved) | Payment made towards Medical Insurance Premium. INR 5,000 additional benefit can be claimed for preventive health checkup which is part of overall limit of INR 25,000. | Expense based deduction |
| 4 | All type of Persons | Section 80GGC | 100% deduction allowable | Donations made to Political parties or Electoral in any mode other than cash. | Expense based deduction |
| 5 | All type of Persons | Section 80G | 100% Allowable for National funds | Donations made to National funds such as National Defense Fund, Prime Minister’s National Relief Fund, Swach Bharat Kosh, Clean Ganga Fund, National Defense Fund, PM Cares fund etc. qualify for 100% of such deductions without any qualifying limits. | Expense based deduction |
| 6 | Individuals | Section 80EEA | INR 1,50,000 | Interest Payment by individuals on home loan for property value up to Rs 45 lacs, loan sanctioned between 01 Apr, 2019 to 31, Mar 2022, the property must be covered under affordable real estate housing project and taxpayer should be first time home buyer. | Expense based deduction |
| 7 | Individuals | Section 80EEB | INR 1,50,000 | Interest payment by on loan of purchase of electric vehicles, sanctioned between 01 Apr, 2019 to 31 Mar, 2023. | Expense based deduction |
| 8 | Individuals not receiving HRA | Section 80GG | INR 5,000 | Individual not claiming HRA on rent paid can claim deduction of rent paid. However, if actual rent paid minus 10% of income or 25% of total income is low then deduction can be claimed of such low amount. | Expense based deduction |
| 9 | Individuals & HUF | Section 80TTA | INR 10,000 | Interest received on Savings bank Accounts by non-senior citizens | Income based deduction |
| 10 | Individuals ( Resident senior citizens) | Section 80TTB | INR 50,000 | Interest received on deposits by resident senior citizens | Income based deduction |
| 11 | Individuals | Special Allowance to Salaried Employees | Maximum Allowable on actual spent basis | Special allowances such as Conveyance allowance, Uniform Allowance, Helper allowance, Daily allowance, Travelling allowance. All the allowance are exempt from income tax if actually spent while saving will make them taxable. | Expense based deduction |
| 12 | Individuals | House Rent Allowance (Salaried Employees) | Maximum allowable up to 10% of “Basic Salary” | Deduction for payment of rent. (Rent even if paid to relative is allowed as deduction) | Expense based deduction |
The most unconventional, popular & current tax saving options to lower income up to INR 5,00,000 have been listed above. However, a number of other benefits/exemptions are available to Assessee.
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Also read other other articles from us >> https://www.taxledgeradvisor.com/business-tax-filling/ https://www.taxledgeradvisor.com/salaried-tax-filing/ https://www.taxledgeradvisor.com/income-tax-deduction-u-s-80g-to-funds-other-than-category-d-shall-be-allowed-based-on-claim-made-in-income-tax-return-of-assessee-says-department/
