Keep reading some of the most common methods that you can claim Tax Cuts while filing your ITR under the old tax regime.
Tax deduction for filing ITR under old tax regime
If a taxpayer has not claimed deduction for investment made in a specific financial year on himself income tax return (ITR) For that year, they cannot claim those cuts in any other year.
To know about some major tax cuts, see the information given below which you can claim under the old tax governance:
1. Cut for health insurance premium under Section 80D
If you are under 60 years of age, you can get a tax deduction of up to Rs 25,000 to pay your health insurance premium under Section 80D. Just keep in mind that this deduction is available only when you pay for your own health insurance and for your dependents (like your wife and dependent children) during the financial year, and it depends on the limit and other rules.
If they are under 60 years of age, you can claim an additional cut of up to Rs 25,00 to pay parents’ insurance (premium). If the parents are 60 years or older, the deduction can go up to Rs 50,000. Since the financial year 2015-16, there is an additional reduction of Rs 5,000 for preventive health checkups.
But keep in mind, a cut of Rs 5,000 is included in the overall range of Rs 25,000 or Rs 50,000 based on the age of the parents.
However, if you are not giving any amount as a health insurance premium for a senior citizen, you have the option to claim up to Rs 50,000 in total due to medical expenditure on senior citizen parents.
2. Cut for employees’ predictions (EPF) under Section 80C
Many salaried employees are covered under the Employees Provident Fund (EPF) scheme. Under this scheme, employees need to put 12% of their salary in their EPF account. The employer matches this contribution. However, you can only claim tax deduction for your contribution under Section 80C. If you want to add more to your EPF account, you can choose the option of voluntary provident fund (VPF). Just remember that the total contribution to both EPF and VPF cannot exceed your basic salary in any financial year.
Also note that the interest earned on EPF starting from FY 2021-22 is not completely tax-free.
New tax exemption limits have been set for both the government and private sector employees. Starting from 2021-22, if an employee’s contribution to EPF and VPF accounts is more than Rs 2.5 lakh in a financial year, the interest earned on the additional amount will be taxable. Additionally, from FY 2020-21, if an employer’s total contribution to EPF, NPS, and Supernation Fund is more than Rs 7.5 lakh in a financial year, the income earned on the additional amount will also be taxable for you.
3. Cut for investment in Public Provident Fund (PPF) under Section 80C
Under Section 80C, you can claim tax deduction of up to Rs 1.5 lakh in a financial year if you invest in specific equipment such as public provident funds (PPF), or tax-saved fixed deposits (FDs).
In addition, PPF enjoys the ‘exemption-free-free-free’ (EEE) status, which means that you can claim tax deduction for investment in it. In addition, the interest earned on PPF is tax-free and therefore the amount you receive on maturity. , The lock-in period for PPF is 15 years and can be extended even if you want.
If you have invested in PPF in FY 2023-24, be sure to claim that investment as a tax deduction under Section 80C. You can claim all tax deductions under Section 80C for investment made in the financial year that corresponds to the year, as long as you chose the old tax regime.
4. Cut for investment in ELSS Mutual Fund under Section 80C
Equity-Linked Saving Schemes (ELSS) are mutual funds that invest in equity and have a three-year lock-in period. You can invest in them and claim tax deduction under Section 80C.
However, you can only claim up to Rs 1.5 lakh in a financial year as a deduction under 80C. Among all eligible schemes under Section 80C, ELSS mutual funds have the shortest lock-in period. When you can claim tax deduction to invest in ELSS mutual funds, any benefits you have made at the time of redemption are taxable.
Even though you do not need to present proof of your investment while claiming tax deduction, it is a good idea to familiarize yourself with rules and your evidence or evidence before claiming any expenses. In this way, you can clarify any dispute under the line.
Tax2win co-founder Chartered Accountant Abhishek Soni explained the concept of claim deduction for ELSS Mutual Fund.
Suppose you invested Rs 50,000 in an ELSS mutual fund in FY 2022-23 and claimed Rs 20,000 as tax deduction that year, can you claim the remaining 30,000 rupees for tax deduction in later years?
Sony says: “No, you cannot claim the remaining 30,000 rupees as a tax deduction in FY 2024-25 (Ay 2025-26) as a tax deduction. The deduction under Section 80C can be claimed only in the financial year in which investment is actually made. Therefore, if ELSS can claim a maximum cut in 4022222-23, if the investment is actually made.
5 A. Tax deduction under Section 80TTA for savings bank account interest
Chartered Accountant (Dr) Suresh Surana says: “Under Section 80TTA of the Income Tax Act, 1961, a person under the age of 60 and the Hindu undivided family (HUFS) allows a deduction to claim deductions under Section 80TTA of the IT Act. A deduction does not occur. Interest and not extended up to interest from fixed or recurring deposits.
Sony explains: “Interest income tax on savings account is taxable according to the rates, which apply to investors, however, bank savings banks do not cut TDS on interest. So if the interest is below the bottom limit, be sure to mention this exemption under Section 80TTA. After entering the interest income, complete the other sections of the ITR form, which include additional income details, cuts, and taxes.”
5 b. Tax deduction under Section 80TTB for senior citizens
Senior citizens can claim Rs 50,000 as tax deduction for interest earned from FDS, savings account, post office deposit, etc.
Surana says: “Residents of the age of 60 years or more are entitled to claim a high cut under Section 80TTB. This section Rs. Provides for deduction. 50,000 on interest income earned from deposits held with banks, including interest from savings, fixed and recurring deposit accounts. In particular, if a taxpayer claims deduction under Section 80TTB, they are not allowed to claim profit under Section 80TTA for the same financial year. ,
Saysa says: “The deduction under Section 80TTA and 80TTB is only available to resident taxpayers and thus, non -residents (NRI) are not eligible to claim these benefits. Also, any interest is more than the prescribed deduction limit of second second. Regardless, whether such an income, form 16 AAS, or annual information details (AIS) is not available in the detail Or avoid possible investigation.
Surana says: “When filing income tax returns, the total interest earned from savings or other qualified deposits should be” under income from other sources “.” The same deduction should then be claimed under the chapter VI-A deduction schedule of ITR form under the appropriate section 80TTA or Section 80TTB. ,
Can a husband claim tax deduction for investment made by wife or children if he himself has not claimed this?
Sony says that you cannot claim direct income tax deduction for investments made by your wife or children. Tax deduction under classes such as 80C, 80D, etc., can only be claimed by the person who has actually spent or invested from his income.
Sony explains: “However, by structuring the investment in joint names or by contributing to joint accounts or policies, both husband and wife can maximize their tax benefits. For example, a joint home loan or joint life insurance policy allows each spouse to claim separate deductions, but only personal investment in your spouse will not be eligible to cut under your 80C limit.”
