Important Keyword: Chapter VI-A, Income Tax, Section 80C, Tax Savings & Deductions.

Proofs for Income Tax Declaration

The HR Department at your company is gearing up to send out emails requesting that you submit proofs for your Income Tax Declaration with the new year approaching. Employees must submit investment proofs and income tax declarations so that the employer can correctly deduct the right amount of TDS (Tax Deducted at Source). It’s important to know what investment proofs need to be provided to your employer. These details are to be submitted using Form 12BB.

Major Sections to Claim Income Tax Declaration

Income tax declaration involves claiming deductions to reduce taxable income, thereby lowering the tax liability. Here’s a breakdown of major sections and what they cover:

Section 80C:

Under this section, you can claim deductions up to INR 1,50,000 by investing in:

• Life Insurance premiums
• ELSS/Mutual Funds (Tax Saving)
• PPF (Public Provident Fund)
• Principal repayment of Housing Loan
• Children’s Tuition Fees (for up to 2 children)
• Fixed Deposits (Tax Savings)
• Unit Linked Insurance Plans (ULIPs)
• NSC (National Savings Certificate)
• Sukanya Samriddhi Account
• Deferred Annuity Plans
• NHB deposit schemes/pension funds

Section 80CCC:

This section allows deductions for contributions to Pension Plans.

Section 80D:

Deductions are available for:

• Medical Insurance premiums for self, spouse, children
• Medical Insurance premiums for parents (higher deduction if parents are senior citizens)

Section 80DD:

Offers deductions for expenses on dependents with disabilities.

Section 80U:

Provides deductions for expenses on own disabilities.

Section 80DDB:

Deductions for treatment of specified diseases.

Section 80G:

Donations made to specified trusts are eligible for deductions.

Section 80E:

Interest paid on Education Loans can be claimed as deductions.

Section 24(b):

Interest on Housing Loan can be claimed, subject to specified conditions.

House Rent Allowance (HRA):

Provides deductions on rent paid, subject to certain conditions.

Section 10(5):

Leave Travel Allowance (LTA) deductions are available for travel expenses within specified limits.

Section 17(2):

Medical Reimbursement deductions are available for medical expenses.

Read More: Senior Citizens Savings Scheme

Web Stories: Senior Citizens Savings Scheme

Official Income Tax Return filing website: https://incometaxindia.gov.in/