Top 10 List of Income Tax Deductions for AY 2021-22: You can claim the following deductions in the current assessment year only on payments and investments made in the previous financial year (FY 2020-21).
Income Tax Deductions for AY 2021-22: The Income Tax Return (ITR) filing season has started. The Central Government recently increased the deadline for ITR filing for the assessment year 2021-22 from July 31 to September 30, 2021, in view of the second wave of Covid-19 pandemic and the subsequent difficulties faced by taxpayers. As you now have more time in hand to file tax returns, take a look at the following list of tax deductions you can claim on various payments, incomes and investments.
You can claim the following deductions in the current assessment year only on payments and investments made in the previous financial year (FY 2020-21). Also, these deductions will not be available for those who opted for the New Tax Regime.
Under Section 24(b), deduction from income from House Property on interest paid on housing loan and housing improvement loan is allowed. According to the Income Tax Rules, the upper limit for deduction of interest paid on housing loans is Rs 2 lakh in the case of a self-occupied property.
For those who have opted to file returns under the New Tax Regime, this deduction from income from house property will not be available from this year.
Note: The total combined deduction of only Rs 1.5 lakh under Section 80C, Section 80CCC, Section 80 CCD (1) can be claimed.
Under Section 80 CCD (1B), a deduction up to Rs 50,000 towards payments made to the Pension Scheme of the Central Government, excluding deduction claimed under 80CCD (1) can be claimed.
Under Section 80 CCD2, a deduction towards contribution made by an employer to the pension scheme of the Central Government can be claimed. However, there are two conditions:
Under Section 80 D, deduction towards payments made towards health insurance premiums and preventive health check-up can be claimed. However, there are various limits:
Also, a deduction up to Rs 75,000 can be claimed in lieu of payments made for maintenance or medical treatment of a disabled dependent or paid/deposited any amount under a relevant approved scheme. However, in the case of persons with severe disability (80$ or more), the deduction limit is Rs 1.25 lakh.
Under Section 80 DD (1B), a deduction up to Rs 40,000 can be claimed for payments made towards medical treatment of self or dependent for specified disease. This deduction limit is Rs 1 lakh in case the person is a senior citizen.
Under Section 80E, deduction of total amount paid towards interest payments higher education loan of self or relative can be made.
Under Section 80EE, a deduction up to Rs 50,000 can be claimed towards interest payment made against the loan taken for the acquisition of a residential house property. However, this deduction is available only for loans sanctioned between 1st April 2016 to 31st March 2017.
Under 80EEA, a deduction up to Rs 1.5 lakh deduction towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
Under Section 80EEB, a deduction up to Rs 1.5 lakh can be claimed on interest payments of loan for the purchase of an electric vehicle. This is available only for loan sanctioned between 1st April 2019 to 31st March 2023.
If HRA is not a part of your salary, deduction towards rent paid for a house can be claimed under Section 80 GG. However, only the least of the following is allowed as a deduction:
The due date for filing ITR for the assessment year 2021-22 is September 30, 2021.
Source: https://www.financialexpress.com/money/income-tax/top-10-list-of-income-tax-deductions-for-ay-2021-22-for-salaried-employees-tax-benefits-on-payments-investments-and-incomes/2291512/
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