IT Return 2023: Various tax benefits provisions have been made under the Income Tax Act 1961 which can help you reduce the tax payers liabilities. The benefit of Standard Deduction is given under Section 80C of the Income Tax Act, which is often known to people. But apart from this, there are some other methods by which the scope of tax deduction can be increased.
The last date for filing Income Tax Return (ITR) for FY 2023 is 31 July 2023. Now only a few days are left to file the returns. In view of this, the Income Tax Department is appealing to the taxpayers to file returns as soon as possible. According to Central Board of Direct Taxes (CBDT) Chairperson Nitin Gupta, more than four crore Income Tax Returns (ITRs) have been filed so far for the financial year 2022-23 and about seven per cent of these are new or first-time returns. It is often seen that people file returns at the last moment due to which they are unable to take advantage of the deductions given by the department in a hurry.
Standard deduction is available under 80C.
Various tax benefits provisions have been made under the Income Tax Act 1961 which can help you reduce the tax payers liabilities. The benefit of Standard Deduction is given under Section 80C of the Income Tax Act, which is often known to people. However, there are many more deductions available under various sections of the Income Tax Act which you can avail to reduce your taxable income to the best possible extent. Taxpayer can claim six deductions while filing ITR 2023. Let’s know about them.
1. Investment in National Pension Scheme (NPS)
Taxpayers can also get exemption above Rs 1.5 lakh by investing in National Pension Scheme ie NPS. Investment in NPS is eligible for deduction under section 80CCD (1B) up to Rs 50,000. This will be in addition to the Rs 1.5 lakh available under 80C.
2. Interest earned from savings account
Section 80TTA of the Income Tax Act makes income up to Rs 10,000 per annum earned from savings accounts tax-free for taxpayers.
3. Deduction for interest on education loan
Under section 80E, you can also claim income tax exemption on the interest paid on education loan. Taxpayers can avail this benefit on loans taken for higher education of their spouse, children or a student of whom they are the legal guardian. This deduction can be availed for a period of eight years starting from the year you start repaying the loan.
4. Deduction for donation
Donations made to funds supported by the Central Government can be claimed for deduction in full. For example, if you donate to Prime Minister’s Relief Fund, Chief Minister’s Relief Fund, etc., you can claim 100% deduction. However, in other cases you are eligible for a deduction of up to 50%.
5. Health Checkup
Under Section 80D, tax exemption of up to Rs 5000 can be availed on health check-up for self, dependent children, spouse or parents below the age of 60 years. For parents aged 60 years or more, up to Rs 7,000 can be claimed for exemption.
6. LIC, PPF Deduction
According to Delhi-based investment and tax expert Ashutosh Ranjan, parents can also claim tax exemption in lieu of LIC and PPF deductions while filing ITR for their children.
