Mastering Key Income Tax Deductions and Exemptions in India

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Section 80D: premiums, parents, and preventive check-ups

Claim medical insurance premiums for yourself, spouse, and children up to the specified limits, with an enhanced cap when covering senior citizen parents. Preventive health check-ups are allowed within the overall limit. Pay premiums via non-cash modes to qualify. Save insurer receipts, policy schedules, and payment confirmations. Share your family structure in the comments, and we’ll suggest an optimized 80D split tailored to your situation.

Section 80DD: relief for caregivers of dependents with disability

Claim a fixed deduction when you support a dependent with a certified disability, including expenses for medical care or contributions to specified schemes for their future needs. Keep a valid disability certificate and proof of payments. The relief is fixed, not expense-based, simplifying planning. If navigating documentation feels overwhelming, tell us your roadblock and we’ll guide you step-by-step.

HRA exemption essentials most people overlook

Your HRA exemption is the least of three values: actual HRA received, a percentage of basic plus DA (higher for metro cities), and rent paid minus ten percent of basic plus DA. Keep rent receipts and your landlord’s PAN if annual rent crosses the threshold. Aarav, a first-year employee, recovered a month’s rent by fixing simple HRA errors—share your figures and we’ll help you compute correctly.

Section 24(b): interest on home loan for real savings

For a self-occupied home, interest deduction is capped annually, subject to completion timelines. For a let-out property, interest is fully deductible, though you can set off a limited loss against other income each year. Obtain the lender’s interest certificate and note any pre-construction interest, which is claimable in equal installments across five years. Ask us for a quick walkthrough if your certificate looks confusing.

Renting out your place: set-offs, carry-forwards, and clarity

Let-out property allows full interest deduction, but loss set-off against other income is capped each year, with unabsorbed loss generally carried forward. Keep lease agreements, rent receipts, and maintenance bills handy for accuracy. Thinking of switching from self-occupied to let-out mid-year? Comment with your timeline, and we will map the treatment and documentation you’ll need to stay compliant.

Education, donations, and savings interest: 80E, 80G, 80TTA/80TTB

Claim the entire interest paid on approved education loans for higher studies, for up to eight assessment years. There is no monetary cap, but the lender must be a bank or notified financial institution. Keep the sanction letter and annual interest statements. Unsure whether your course or lender qualifies? Ask below, and we’ll point you to the exact rule you need.

Education, donations, and savings interest: 80E, 80G, 80TTA/80TTB

Donations to eligible funds and institutions qualify at different rates, some with ceilings. Pay via traceable modes; large cash donations generally do not qualify. Preserve receipts showing the institution’s PAN and 80G registration details. If you name the fund you supported, we can help you estimate the eligible deduction right in the comments.

Education, donations, and savings interest: 80E, 80G, 80TTA/80TTB

Individuals and HUFs can claim a limited deduction on savings account interest, while senior citizens enjoy a higher limit that also covers bank deposit interest. Track interest through bank statements and reconcile with your tax information statement. Want an easy tracker that auto-updates across accounts? Subscribe and we’ll share our spreadsheet that flags overages automatically.

Education, donations, and savings interest: 80E, 80G, 80TTA/80TTB

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Old vs new tax regime: where deductions and exemptions matter most

The new regime offers lower slab rates but restricts most deductions and exemptions. A standard deduction for salaried taxpayers and certain employer NPS contributions remain available, among a few others. Run the math annually because your mix of salary, rent, and investments can change. Drop your salary structure anonymously, and we will suggest a direction.

Old vs new tax regime: where deductions and exemptions matter most

Riya claimed HRA, home loan interest, 80C, and 80D. Under the old regime, her net taxable income fell sharply, beating the new regime by a clear margin. Your outcome may differ if you rent less, hold no home loan, or skip investments. Post your rough numbers and we’ll sketch a quick, apples-to-apples comparison.

LTA covers travel within India for specified family, excluding hotel stays and local conveyance. Claims are limited within official blocks and require valid travel proofs. Keep tickets, boarding passes, and employer policy notes together. If you tell us your planned route, we can flag what qualifies so you avoid last-minute disappointments.

Gratuity received on separation enjoys a substantial exemption for eligible employees, subject to statutory limits and computation rules. Maintain your employer’s calculation sheet and ensure Form 16 reflects the exempt portion correctly. If your number seems off, share the components (anonymously), and we’ll help you verify the math.

Leave encashment at retirement or resignation enjoys an exemption up to notified limits for non-government employees, with specific computation based on salary and accumulated leave. Keep HR letters, payslips, and calculation worksheets safe. Unsure how many days count or which pay elements matter? Ask below, and we’ll walk you through the formula.

Evidence, deadlines, and smooth filing: make every rupee count

Form 12BB, employer cut-offs, and claiming later in your return

If your employer deadline passes, claim eligible deductions directly in your return and seek a refund of excess TDS. Keep PANs, policy numbers, investment statements, and lender certificates ready. Unsure what your company will accept? Post the policy snippet, and we will help translate it into actionables.

Build a ‘tax folder’ habit that survives scrutiny

Create a cloud folder with subfolders for 80C, 80D, HRA, home loan, donations, and interest. Save PDFs, label them by month, and export annual summaries from banks and brokers. Future-you will thank present-you during assessments. Want our folder blueprint and file-naming convention? Subscribe and we’ll send the template.

Stay updated and participate: your voice shapes our guides

Rules evolve with each Budget and circular. Comment with your tricky scenarios, tag a friend who needs clarity, and subscribe for concise updates that cut through jargon. The more you share your stories, the sharper and more practical our coverage of deductions and exemptions becomes for everyone.