Income Tax Deductions for FY 2024-25: What You Need to Know

As the deadline for filing your income tax return (ITR) for FY 2024-25 approaches on September 15, it is crucial to be aware of the deductions you can claim. Taxpayers can take advantage of several deductions, but only if these investments were made during the financial year.

Deductions Under the New Tax Regime

If you are opting for the new tax regime, here are some deductions you can claim:

1. Deduction from Income from House Property: Interest paid on housing loans is deductible from your income from house property.
2. Section 80CCD(2): This deduction applies to the contribution made by an employer to the central government’s pension scheme.
3. Section 80CCH: If you contributed to the Agnipath Scheme, you can also claim deductions under this section.

Tax Deductions in the Old Tax Regime

For those filing under the old tax regime, the following deductions are available:

1. Section 24(b): Deduct the interest paid on housing loans and housing improvement loans from your income from house property.
2. Chapter VIA Deductions:
   • Section 80C: A combined deduction limit of ₹1,50,000 is applicable. Ensure that you fill in the ITR with details for each eligible payment, including policy numbers.
   • Section 80CCC: Deductions for annuity plans from LIC or other insurers contributing to pension schemes.
   • Section 80CCD(1): Deduction for contributions to the central government’s pension scheme.
3. Section 80CCD(1B): Additional deductions for payments made to the pension scheme, distinct from Section 80CCD(1).
4. Section 80D: Deductions for health insurance premiums and preventive health check-ups.
5. Section 80DD: Applicable for maintenance or medical treatment of a disabled dependent.
6. Section 80DDB: Deductions for medical treatment of specified diseases for yourself or dependents.
7. Section 80E: Deduct interest payments on loans taken for higher education.
8. Section 80EE: Deductions for interest payments on loans for residential properties sanctioned between April 1, 2016, and March 31, 2017.
9. Section 80EEA: Available for first-time home buyers for loans sanctioned between April 1, 2019, and March 31, 2022, provided deductions under Section 80EE have not been claimed.
10. Section 80EEB: Deductions for interest on loans taken for purchasing electric vehicles, provided the loan is sanctioned between April 1, 2019, and March 31, 2023.
11. Section 80G: Deductions for donations made to specified funds and charitable institutions.
12. Section 80GG: Deductions for rent paid, applicable to self-employed individuals or those outside the scope of HRA.
13. Section 80GGA: Deductions for donations to scientific research or rural development.
14. Section 80GGC: Contributions made to political parties or electoral trusts are deductible under this section.
15. Section 80TTA: Deductions for interest earned on deposits by senior citizens.
16. Section 80U: Deductions for resident individual taxpayers with disabilities.

Conclusion

As the due date for filing your ITR approaches, ensure you’ve considered all relevant deductions applicable to your situation. By claiming the rightful deductions, you can reduce your taxable income and potentially enhance your tax refund. Make informed decisions and file your return on time!