If the net taxable income after all deductions does not exceed Rs 5 lakh, the taxpayer won’t have to pay any tax. Find out if you are eligible for any of these tax deductions to lower your income below the threshold.
- Savings account interest
Sec 80TTA
Up to Rs 10,000 interest earned on a savings bank account balance is exempt from tax.
- Medical insurance
Sec 80D
Up to Rs 25,000 premium for medical insurance of self and family and Rs 25,000 for parents (Rs 50,000 if they are senior citizens).
- Education loan
Sec 80E
Interest paid on education loan for self or dependant. Deduction can be claimed for a maximum of eight financial years.
- House rent without HRA
Sec 80GG
If taxpayer doesn’t get HRA, he can claim lowest of the following three: Rs 5,000 a month, 25% of income or rent paid minus 10% of income.
- Donations
Sec 80G
Donations to eligible organisations can be claimed as deduction. Donations of over Rs 2,000 cannot be made in cash.
- Purchase of electric car
Sec 80EEB
Up to Rs 1.5 lakh interest paid on loan to buy an electric vehicle is tax deductible.
- Disability
Sec 80DD and 80U
If taxpayer or dependant suffers from disability, deduction of Rs 75,000-1.25 lakh can be claimed.
- Medical treatment
Sec 80DDB
Up to Rs 40,000 if taxpayer or dependant suffers from any of the specified disease. Rs 1 lakh in case of senior citizens.
