ITR Filing: After filing ITR, your tax refund will also increase, just keep these 5 things in mind

(*5*)

Income Tax Refund: This time the final date to file Income Tax Return (ITR) is 31 July 2024. While filing ITR, you possibly can declare sure deductions to cut back the earnings tax return.

– Advertisement –

How To Boost Tax Refund: With the start of the brand new monetary 12 months, the method of filing Income Tax Return (ITR Filing) began. Most of the businesses will give Form-16 to the workers by the top of May. At the identical time, some self-employed folks have accomplished the method of filing ITR. This time the final date to file Income Tax Return (ITR) is 31 July 2024. While filing ITR, you possibly can declare sure deductions to cut back the earnings tax return. Many instances persons are not conscious of the deductions below which you’ll declare deductions.

No exemption of any type in the brand new tax regime

There is not any good thing about any type of exemption or deduction below the brand new tax regime. But in the outdated tax regime, there are lots of funding choices on which you’ll avail tax deduction. There are some tax deductions about which individuals shouldn’t have a lot data however the tax payer undoubtedly will get advantages by claiming below them. Let us learn about such options-

National Pension Scheme

You can get the good thing about further deduction of Rs 50,000 below part 80CCD (1B) on funding in Tier-1 account of NPS. This is completely different from the good thing about deduction out there below part 80C on investments as much as Rs 1.50 lakh.

Deduction made on lease fee

Those in the salaried class who don’t get the good thing about House Rent Allowance (HRA) and people working their very own enterprise can declare tax deduction on lease below part 80GG for the rented home below sure circumstances. For instance, if your month-to-month lease is Rs 10,000 and your annual earnings is Rs 7 lakh. In such a scenario, you possibly can avail deduction of Rs 50,000. Let us perceive this calculation like this-

Rent paid: Rs 10,000 per 30 days
Total earnings: Rs 7 lakh yearly
10% of earnings: 7,00,000 x 10/100 = Rs 70,000
Deducting 10% of the rental earnings: Rs 10,000 – (70,000 / 12) = 10,000 – 5,833 = roughly Rs 50,000 every year

Medical expenditure

Taxpayers can also avail tax deduction on the medical bills of their mother and father. Many persons are conscious that they’ll declare tax deduction on medical insurance premiums taken for all times associate, dependent kids and oldsters. But, if your mother and father are senior residents and shouldn’t have any medical insurance, then you possibly can also avail tax deduction of as much as Rs 50,000 below Section 80D on their medical bills. Apart from this, you possibly can declare a deduction of Rs 5000 below Section 80D on the well being associated check-up of your life associate and oldsters.

Deduction on electrical automobile

If you’ve gotten purchased an electrical automobile and brought a mortgage for it, then you possibly can also get earnings tax exemption on the curiosity paid on its mortgage. Under Section 80EEB, you possibly can declare a deduction of as much as Rs 1,50,000 on the curiosity paid on mortgage taken from the financial institution. But the good thing about this deduction will be out there provided that your mortgage is authorised between January 1, 2019 and March 31, 2023.

Discount on donations

Apart from this, you possibly can also declare earnings tax deduction on donations made to some organizations. Donations given to these organizations get tax exemption below part 80G. But relying on the kind of donation given by you to the registered group, you get the good thing about completely different tax deductions.

These are also choices for tax discount

Apart from the tax deductions talked about above, there are lots of extra tax deduction choices below the Income Tax Act, 1961. You can make investments in PPF, EPF, ELSS, NSC below part 80C. In Section 24, you possibly can declare deduction on the curiosity paid on your residence mortgage. Tax deduction is also out there on curiosity paid on mortgage taken below Section 80E. You can also get the good thing about tax deduction on House Rent Allowance (HRA).

– Advertisement –