As we had discussed the common deductions under the Section 80C, it’s time to recount other expenses that are allowed for deduction under the various Sections of the Income Tax Act.
Section 80E - Education Loan Interest
- Any amount of interest paid towards repayment of Education loan taken for the fulfillment of higher education of self, spouse or children is eligible for deduction. There is no limit placed on the extent of which deduction will be allowed. Therefore, the aggregate amount paid towards interest will be deducted as an expense.
Section 80D - Medical Insurance Premium -
A total premium payment of up to Rs 25,000 is deductible from the income under the Section. Further, an individual can claim an additional deduction of Rs 25,000 for premium payment for parents. If the parents are Senior Citizens, then limit of such addition deduction will be up to Rs 30,000. Thus, a total of 50,000 or Rs 55,000 (Senior Citizens) is eligible for deduction under this Section.
Also, an individual can claim up to Rs 5,000 for payment for preventive health check-up of self, spouse, children or parents. However, the total exemption under the section cannot exceed Rs 25,000.
Section 24 - Home Loan Interest -
While the principal payment is already covered under Section 80C, the interest component repaid towards a house property can be claimed under this section. The maximum deduction limit is Rs 2,00,000 for the self-occupied house while there is no limit for house property given on rent.
Section 80DD - Disability -
If an individual or a dependent suffers from disability then a deduction of up to Rs 75,000 can be claimed from the income under this head. The limit can go up to Rs 1,50,000 if the type of disability is severe.
Section 80DDB - Treatment of Specified Illnesses-
The Income Tax Act allows deduction of up to Rs 40,000 for expenses incurred towards the treatment of specified illnesses for self, spouse, dependent children or parents. The deduction limit is Rs 60,000 and Rs 80,000 for individual above the age 60 years and 80 years respectively.
Section 80G - Donations -
Lastly donations made to recognized charitable institutions not exceeding 10% of the total gross income are eligible for deduction under the Section 80G.
One must carefully go through all these deductions and ensure that have not missed claiming any expense, which otherwise might have eased the tax outgo burden.