The Income Tax Department has notified ITR-1 and ITR-4 forms for the assessment year 2025-26. There are provisions for tax deduction under sections 80C, 24B, 10(13A) and 80D. Every taxpayer should know about them.
The process of filing income tax returns for the financial year 2024-25 is going to start now. The Income Tax Department has also notified ITR-1 and ITR-4 forms for the assessment year 2025-26. These forms are for individuals and entities whose annual income is up to ₹ 50 lakh. Taxpayers need to be aware of some important sections of the Income Tax Act, 1961 while filing returns. Understanding them helps in calculating tax, understanding deductions and choosing a tax regime.
Every taxpayer should know about section 80C of the Income Tax Act. Income tax payers who opt for the old tax system can avail tax deduction of up to ₹1.5 lakh under section 80C. This includes investments like Public Provident Fund (PPF), Employees Provident Fund (EPF), Equity Linked Saving Scheme (ELSS), tax saving fixed deposits and life insurance premium. However, there is no deduction under section 80C in the new tax system. However, under section 80CCD(2), one can avail deduction of up to 10% on contribution made by the taxpayer’s employer to the National Pension Scheme (NPS).
Section 24B
If you have taken a loan for a house, then you can avail tax exemption of up to ₹2 lakh on its interest. This exemption is available under section 24B of the Income Tax Act. This exemption is available in both tax regimes. Therefore, it is important for you to know about this section.
Section 10(13A)
Taxpayers who live in rented houses and are paying rent of more than ₹1 lakh per annum can avail exemption on House Rent Allowance (HRA) under Section 10(13A). This exemption is especially beneficial for eligible persons.
Section 80D
Section 80D provides exemption on health insurance premium. For those below 60 years of age, this limit is ₹25,000, while senior citizens get exemption up to ₹50,000. A maximum exemption of up to ₹1 lakh can be claimed by combining the premium of family and parents.
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