LESSER KNOWN TAX DEDUCTIONS
Many individuals think that tax deductions means investing in public provident fund or life insurance policy only. But there are lots of other deductions that are available and people don’t claim them as they are not aware of them. Here are some of the deductions about which people of unaware:
1. MEDICAL EXPENSES FOR SPECIFIED DISEASES LIKE AIDS, CANCER
The actual expenditure incurred on treatment of specified diseases like AIDS, Cancer, etc. is deductible to the extent of Rs. 40,000 or the actual expenses whichever is lower. And in case of Senior Citizens the maximum limit is Rs. 60,000.
2. DEDUCTION OF MEDICAL EXPENSES INCURRED ON DISABILITY
Any expenditure incurred for medical treatment of dependent or own or have deposited any amount under a prescribed scheme for maintenance of dependent, you can seek a tax deduction. Maximum limit for deduction in this case is Rs. 50,000 and Rs. 1, 00,000 in case of severe disability.
3. DEDUCTION FOR RENT PAID IF YOU ARE NOT AVAILING HRA
You can claim a deduction up to Rs. 2,000 per month even if you don’t receive HRA from you employer or if you are self employed. This is deduction is available under section 80GG but it has some conditions also. Neither the tax payer nor spouse should own a house at the place of employment.
4. AMOUNT PAID UNDER NATIONAL PENSION SCHEME
Any contribution made by an employee to NPS qualify for a deduction under Section 80CCD but maximum limit is Rs. 1,00,000 for all the deductions under Section 80C. From April, 2011 employer contributions to NPS up to 10% of the employee’s salary would qualify for an additional deduction.
5. REPAIRS AND MAINTENANCE OF HOUSE PROPERTY
Very few people know that any interest paid on home loan for reconstruction or repair of house property qualifies for deduction up to Rs. 30,000, and its overall limit is Rs. 1, 50,000.
You need not attach any receipts of investments, donations or even expenses along with the returns. The income tax department can ask for a copy of the receipts if required.