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5 Income Tax Deductions to Save Tax for ITR FY2017-18

If you have a valid loan agreement in place, you can claim deduction for the interest paid by you under Section 24.

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Updated:July 12, 2018, 10:39 AM IST
5 Income Tax Deductions to Save Tax for ITR FY2017-18
File photo of the Income Tax Building.
#1 Rent Exemption

Even if your Salary Slip doesn’t have an HRA component or you are a non-salaried person, you can still claim deduction for Rent under Section 80GG. The final amount for Rent Exemption is the least amongst

(i) Rent paid less 10% of total income
(ii) 25% of the total income
(iii) Rs.5,000/- per month

However, the individual/HUF or its spouse/children must not own any accommodation and must not be receiving rent.

#2 Home Loan Charges & Down Payments

If you have taken a home loan recently then you must paid processing fee as well as other ancillary charges. These fees are treated as interest and under Sector 24 you can claim a deduction for the processing fee/ancillary charges paid by you on home loan. Also, at times taxpayers mortgage gold or procure money from private lenders to pay the down payment of the home. If you have a valid loan agreement in place, you can claim deduction for the interest paid by you under Section 24.

#3 Interest from Savings/Post Office Account

Interest on Savings Account or your Post Office Account is treated as part of your taxable income; however, you can claim deduction up to Rs.10,000/- under Section 80TTA for the interest earned. Also, if you have made savings in taxable instruments like Fixed Deposits and others in the name of a disabled child, then the interest earned on the same can be separated and not clubbed in your taxable income.

#4 Specified Diseases

Deduction under Section 80DDB can be claimed if you yourself or any of your dependent is undergoing treatment for Specified Diseases like Neurological diseases, Malignant Cancers, AIDS, Hematological disorders, Chronic renal failure, etc. For individuals – the actual amount of treatment or Rs.40,000 (whichever is less) can be claimed, while the upper limit for senior citizens and super senior citizens is Rs.60,000 and Rs.80,000, respectively.

#5 Disability

People with disability (40%) can claim a deduction of Rs.75,000 under Section 80U, while if you have a disabled dependent (40%) then too you can claim a deduction of Rs.75,000 under Section 80DD. In case the disabled person has severe disability (80%), then the eligible deduction is Rs.1,25,000.

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| Edited by: Ahona Sengupta
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