LESSOR KNOWN DEDUCTIONS AND REBATES IN INCOME TAX
Here are the few deductions which are lessor known to common persons:
1) SECTION 80GG
This is the deduction related to Rent paid. If your employer is not giving your HRA (House Rent Allowance) then also you can claim deduction for rent paid. You can claim deduction maximum of Rs. 2,000 per month.
2) SECTION 80E
This section belongs to interest on loan taken for higher education and vocational courses. You can also claim any interest paid on loan taken for higher education of spouse, children or student for whom you are guardian.
3) SECTION 24B
Interest paid on second home loan is also fully deductible. If you buy second house through another home loan & gives it on rent, entire interest is deductible but rent income will be taxable.
4) SECTION 80D (Medical insurance of parents)
Normally everyone knows that Section 80D deals with medical insurance and its limit is Rs 15,000 but you can also claim deduction of additional Rs 15,000 for medical insurance of your parents. And if any one of them is Senior Citizen then this additional limit will go up to Rs 20,000.
5) SECTION 80G
This section deals with donations. If you are donating to specified funds then you can claim its deduction also. Some funds give you deduction of 100% of amount donated and some 50% of amount donated. So clarify it for claiming deduction.
6) SECTION 80EE
You can avail benefit of this section for two assessment years,i.e., 2014-16 only. This section provides deduction to first time home buyers. It provides deduction of interest on home loan upto Rs 100000. But you should be first time buyer of house property, value of house should not be more than Rs 40 lakhs, amount of loan should not be more than Rs 25 lakhs and for this purpose loan should have been taken between 01.04.13 to 31.03.14. You can avail this benefit in two years, i.e., if you are unable to avail the benefit in one assessment year then you can carry forward the balance to next year.
7) SECTION 80TTA
This account deals with interest on savings account. Earlier the interest earned from savings account were taxable under normal slab but now interest upto Rs 10000 is allowed as deduction. For claiming this deduction you have to first include it in your income then you can claim its deduction under Chapter VI-A.
8) REPAIRS AND MAINTENANCE OF HOUSE
Very few people know that they can claim deduction of interest paid on loan taken for repairs and maintenance of house property also.
9) HRA as well as HOME LOAN BENEFITS
If you have taken home loan and are living in rented house then you can claim following deductions:
-> Principal repayment of Home loan under Section 80C
-> Interest payment of Home loan under Section 24
-> HRA benefit