Notifications

• Accessing Expert Guidance through the Platform
  • If you have questions or uncertainties while filing your income tax returns, it is advisable to consult a Chartered Accountant (CA) through this platform. The opportunity to interact with a CA is available free of charge, depending on the discretion of the service provider.
• Clarity and Professional Advice
  • A CA will offer you clear and unambiguous guidance, which is particularly beneficial if you are not a tax expert but wish to file your returns correctly. Their expertise will ensure that you receive accurate advice tailored to your specific situation.
• Interactive Support for Your Tax Filing Journey
  • You can initiate a chat session with a CA at any time. During the session, you may explain your issue or concern, and the CA will guide you step by step through the process of filing your returns or resolving any related challenges you encounter.
• The standard deduction under Section 16(ia) can’t exceed gross salary. Hence check your gross salary and then apply the standard deduction. It should be the lower of salary and allowed standard deduction for that FY, AY and regime.
• Do not directly reduce interest income while declaring deduction under section 80TTA. Always show the full income and then claim deduction under 80TTA separately.
• ITR-1
  • It is applicable to resident individuals with income up to ₹50 lakh.
  • Sources of income: Salary, one house property, and other sources (excluding lottery or racehorses).
  • It's not usable by individuals with foreign assets, foreign income, or capital gains.
  • It's best suited for salaried employees with straightforward tax profiles

Section 80TTA – Deduction on Savings Bank Interest

Overview

Section 80C of the Income Tax Act, 1961 allows individual taxpayers and Hindu Undivided Families (HUFs) to claim deductions up to ₹1,50,000 per financial year by investing in specified instruments or incurring eligible expenses. This section is part of Chapter VI-A and is widely used for tax planning and long-term financial structuring.

Eligible Taxpayers

• Resident and Non-Resident Individuals
• Hindu Undivided Families (HUFs)

Maximum Deduction Limit

• ₹1,50,000 per financial year
• Applies to total of all eligible investments and expenses under Section 80C

Eligible Investments

• Public Provident Fund (PPF): Long-term government-backed savings with tax-free returns
• Employee Provident Fund (EPF): Mandatory retirement savings for salaried employees
• Equity Linked Savings Scheme (ELSS): Mutual funds with a 3-year lock-in and market-linked returns
• National Savings Certificate (NSC): Fixed-income investment issued by post offices
• Tax-saving Fixed Deposits: 5-year lock-in deposits with banks
• Life Insurance Premiums: Premiums paid for self, spouse, or children
• Sukanya Samriddhi Yojana (SSY): Savings scheme for girl children with attractive interest rates
• Unit Linked Insurance Plans (ULIPs): Hybrid insurance-investment products

Eligible Expenses

• Tuition Fees: Paid for up to two children studying in India
• Home Loan Principal Repayment: Only the principal component qualifies under 80C
• Stamp Duty and Registration Charges: Paid during purchase of residential property

Important Notes

• Deductions under Section 80C are not available to companies, firms, or LLPs
• Investments must be made within the financial year to qualify
• Documentation and proof of investment/payment are essential for claiming deduction

Strategic Planning Tips

• Combine ELSS and PPF for balanced exposure to equity and debt
• Align 80C investments with long-term goals like retirement or child education
• Avoid last-minute investments. Plan early to optimize returns and liquidity

What is Section 80D?

Section 80D of the Income Tax Act, 1961 allows an individual or a Hindu Undivided Family (HUF) to claim a deduction for medical insurance premiums paid and certain health-related expenses. It aims to encourage health insurance coverage and reduce out-of-pocket medical costs.

Key points to remember

• Premiums paid via cash are generally not eligible (except preventive check-ups).
• Deduction allowed even if parents are not dependent on the taxpayer.
• GST included in the premium is eligible for deduction as part of the premium amount.
• Group health insurance paid by employer is not eligible under Section 80D for the employee (since employee did not bear the cost).

Significance

Section 80D incentivizes taxpayers to buy health insurance and promotes preventive health measures. It provides enhanced support for senior citizens, who typically have higher medical expenditure.

Quick printable checklist

1. Collect receipts / policy documents for premiums paid (ensure non-cash payment receipts).
2. Include preventive health check-up bills (limit ₹5,000 within overall cap).
3. Confirm tax payer age (senior citizen = age 60 or more) for limit validation.
4. Claim premiums paid for parents even if they are not financially dependent.