ITR Filings are prime indicators of both the moral and the economic compass of a Nation. India as a nation has long been suffering from a below-par tax base. This shows up subsequently in government budgetary allocation to various public welfare schemes. A strong tax base is the lifeline of a strong economy and a stronger nation. It is a common citizen and the only way to become a participant in Nation’s growth and prosperity. The current Governments impetus on increasing the tax base is a refreshing move in this regard. But more than a compulsion, it is also important that citizens realize that paying taxes is Dharma or Duty which must be followed.
Income Tax Return (ITR) provisions can be a real blessing in disguise. A planned ITR filing can help you get rid of a truckload of expenses that, if left untreated, can cause a returns dent in your salary accounts. The Income Tax (IT) department provides a host of claim options in ITR Returns which provide cover against a number of expenses like loan payments, medical expenditures etc. Most importantly, even losses in capital gains can be used to claim ITR relaxations.
Below we list 5 expenses that Employees can set off during ITR Filings.
Education Loan Repayments
Education is not cheap. Most of us have opted for an education loan. One of the benefits of ITR filing is that we can claim a deduction on interest paid on education loans
No HRA (House Rent Allowance)
Salaried individuals living in a rented house can claim HRA, if not included in salary, upon filing form 10B.
National Pension Scheme (NPS):
NPS offers a plethora of investment options. Employees between the age group 18-65 can invest part of their pension fund into NPS options. For individuals with NPS investments exceeding Rs 50,000, the amount can be offset against their taxable income.
Routine Health Check-Ups and Medical Insurance
Employees can also claim benefits up to Rs. 25,000 against medical insurance premiums of self as well as first blood relations (spouse, children, and parents). The benefits further increase to Rs 30,000 for senior citizen parents. Also, annual benefits up to Rs 5,000 can be claimed on preventive health check-ups by employees.
Capital Gains Settlement
Any loss made in a capital asset sale can be carried forward in IT returns. Though keep in mind that capital gain loss can be settled against capital gains only.
Recommended: How to Download Income Tax Return E-Filing Software?
Hence it is paramount to realize that instead of getting saddened or mulling over ITR, it is important to use ITR for benefits and claims. Using these benefits taxpayers can participate in Nation building while at the same time paying less on their taxes. In addition to ITR benefits, section 80C under Income Tax Act also provides a benefit of Rs 1.50 lakh on investment.
