Those who have opted for the new, concessional tax regime will not be able to claim such tax deductions.
Here is a look at how those who have opted for the existing income tax regime can fill in the details of deductions in the ITR-1 form.
Where to find details of deductions
Usually, if you have mentioned these deductions to your employer to lower the tax deducted on salary, then information on these deductions will be available in your Form 16. Further, the income tax department offers pre-filled information in the tax return. However, an individual is required to cross-check the information due to the many glitches on the recently launched e-filing website of the tax department.
If you have missed out on sharing the above-mentioned details to your employer, then you can claim these deductions at the time of filing income tax return (ITR).
These deductions will be claimed once you have filled in the income details from all sources. Do claim these deductions by mentioning the amount in the correct section of the ITR form. Read on to know how to fill in the details of deductions in the ITR-1 form.
- Sections 80C, 80CCC, 80CCD(1), 80CCD(1B) and 80CCD(2)
One of the most commonly availed deductions is under section 80C. Along with this one can claim deduction under sections 80CCC and 80CCD (1). The latter ones are available on the investments made in pension funds notified by the government such as National Pension System (NPS), Atal Pension Yojana (APY) etc. The maximum aggregate deduction that can be claimed under the three sections is Rs 1.5 lakh in a financial year.
Under section 80C, deductions can be claimed for specified investment/expenditures made such as investments in EPF, PPF, principal repayment of housing loan etc.
Additional deduction of Rs 50,000 is available for the investment in NPS under section 80CCD (1B). This deduction is available over and above the section 80C deduction. Thus, an individual can claim a total deduction of Rs 2 lakh in financial year.
Additional deduction of 10% of your basic salary can be claimed if your employer makes contribution to NPS on your behalf. This deduction can be claimed under section 80CCD(2).
- Sections 80D, 80DD 80DDB and 80U
Section 80D offers deduction on the premium paid on a health insurance policy for maximum up to Rs 25,000 in a financial year. Further, an individual can claim deduction for preventive health check-ups of Rs 5,000. However, it comes within the overall limit allowed under section 80D. The total amount paid on preventive health check-ups for self and parents cannot exceed Rs 5,000.
In case of your senior citizen parents, maximum deduction of Rs 50,000 is available for health insurance premium paid. However, if your senior citizen parents are not covered under any health insurance policy, then deduction can also be claimed for the medical expenditure incurred.
Maximum deduction that can be claimed under Section 80D
|Nature of the amount spent||Age of family Member||Age of family Member||Age of the parents||Age of the parents|
|Below 60 years||Above 60 years||Below 60 years||Above 60 years|
|Medical Insurance||Rs 25,000||Rs 50,000||Rs 25,000||Rs 50,000|
|Health Check-up*||Rs 5,000||Rs 5,000||Rs 5,000||Rs 5,000|
|Medical Expenditure||–||Rs 50,000||–||Rs 50,000|
|Maximum deduction||Rs 25,000||Rs 50,000||Rs 25,000||Rs 50,000|
*Aggregate deduction in respect of preventive health check-up shall not exceed Rs. 5,000
Expenses made for taking care of disabled person can be claimed as deduction under section 80DD. Dependent individual for which deduction under this section can be claimed includes spouse, any child (son/daughter), parents (except for in-laws) and siblings (brother/sister). The maximum deduction amount available depends on the nature of disability. If the dependent individual has disability of 40%, then you can claim up to Rs 75,000 as deduction. On the other hand, if the dependent has severe disability of at least 80 per cent, then the maximum deduction available is Rs 1.25 lakh.
However, if a disabled individual himself wants to claim the deduction, then such deduction can be claimed under section 80U. However, if this deduction is claimed, then any other individual cannot claim deduction on your behalf under section 80DD.
Section 80DDB covers expenditure for the treatment of specified diseases either for self or a dependent. The maximum deduction allowed under this section depends on the age of the person on whom money is being spent for the treatment. Maximum deduction of Rs 40,000 can be claimed. In case of senior citizen, maximum deduction of Rs 1 lakh is allowed.
Do keep in mind that while claiming deductions under section 80DDB, the maximum amount of deduction available will be reduced by the amount of reimbursement of treatment cost, if any, received from the employer or insurance company.
- Section 80E: Interest on loan taken for higher education
Interest paid on the education loan is eligible for deduction. As per tax laws, there is no limit on the maximum amount claimed as deduction. However, this deduction is available up to 8 years starting from the year in which interest payment began or until interest is paid in full. Deduction can be claimed for education loan taken for higher education of self, spouse or children.
- Interest payment on home loan
Additional deduction of Rs 50,000 can be claimed under section 80EE if the following conditions are satisfied:
a) The loan taken by you was sanctioned between April 1, 2016 and March 31, 2017;
b) The home loan taken does not exceed Rs 35 lakh;
c) The value of house purchased by you does not exceed Rs 50 lakh;
d) The house for which loan is taken is your first house.
Similarly, individual can claim additional deduction of Rs 1.5 lakh under section 80EEA if the following conditions are satisfied:
a) If the loan has been sanctioned between April 1, 2019 and March 31, 2021;
b) The stamp value duty of house does not exceed Rs 45 lakh;
c) Individual does not own any residential property on the date of sanction of loan.
- Section 80EEB: Deduction in respect of purchase of electric vehicle
Deduction is available on the interest paid for the loan taken for buying an electric vehicle. An individual can claim maximum deduction of Rs…