When you furnish the ITR in the current year through pre-filled forms then you can not claim the specific tax deductions that do not show on your Form 26AS or new I-T Annual information statement and thus do not get auto-populated in the income tax return forms.
You do not need to think about furnishing the income tax return beneath the latest tax regime which has executed nearly 70 tax deductions and exemptions. But when one is furnishing the Income-tax return beneath the former regime then you are required to deeply investigate the expense for the former fiscal year to raise the advantages of the tax available for you.
Mentioned are the 4 tax deductions that you might ignore to claim when pre-filled ITR forms are practised by you
House Rent Excluding HRA Exemptions
A salaried person who resides in the rented accommodation can utilize the element of House Rent Allowance (HRA) in their salary package to diminish the tax payment. But if the HRA does not come in your salary structure then under section 80GG of the Income Tax Act 1961, then you pose the choice to claim the deduction on the furnished house rent. Here is the impact of deduction which is a minimum of the following:
- Actual rent paid minus 10% of the taxpayer’s total income
- Rs 5,000 per month
- 25% of the total income
Beneath section 80G the assessee indeed requires to meet some additional conditions so as to claim the deduction. It points out that the assessee must not own the house in the same city in which he is residing on rent also there should be no house in the name of his spouse, minor child, or HUF towards which he is a member the city where his/her office is situated or business is conducted
Savings Account Interest Deduction
Beneath section 80TTA an assessee can avail of the deduction of Rs 10,000 on interest obtained from the savings bank account. If the earned interest from the savings account is lower from Rs 10,000 then the complete amount gets free from the taxes.
Worth specifying that here so that the deduction available under section 80TTA is not liable to apply for the interest obtained via fixed deposits, recurring deposits, or time deposits.
Medical Bills of Uninsured Parents Deduction
If the age of your parents is more than 60 years who do not have any medical insurance scheme but use the medical treatment in the former fiscal year then you are able to avail of the deduction on their medical bills. Beneath section 80D one can avail Rs 50,000 as a deduction upon the amount filed on the medical treatment of the dependent parents whose age is 60 years or more. Money can be claimed as a deduction on purchasing the medicines for the senior parents.
The majority of the assessees forget to claim the deduction even if they spend more than Rs 50,000 on their senior citizen parent’s medicines and the regular checkups for each year. However, the assessee does not pose to file the bills or receipts during the time of furnishing the income tax return, they should maintain the assisting transaction documents updated through them.
Donations Deduction
If you make any donations to any COVID-19 relief fund or towards any charitable institution which is accredited by the government in the former fiscal year then indeed you can avail of the deduction upon the same amount beneath section 80G. Still, the deduction would make a difference when the final amount is decided.
For instance, the donations furnished to the union government-accredited institutions are subjected to a 100% deduction. There will be only 50% of the total amount which shall be subjected towards the deduction if the institution is private. But kind donations performed shall not count as deductions.
Moreover when you make the donation in cash then the deduction available is only Rs 10,000 furnished the donor has receipts to back the transactions. Indeed to claim the deduction the assessee should need the PAN of the donee.
