ITR E-Filing Essentials: Know Your Tax Deductions:

ITR E-Filing Essentials: Know Your Tax Deductions E-filing may have made it easier to file Income Tax Returns, but ensuring that you enter everything correctly is still your responsibility. Each of the amounts you enter has to be correct, especially when you are claiming deductions. Often, taxpayers make deductions they're not entitled to make. This not only impacts the return accuracy but could also lead to problems down the line. Claim only if you are genuinely eligible. Deductions are provided by the Income Tax Act to reduce taxable income, but they must be backed by actual investments or payments. Below are some common examples of eligible deductions:

• 80C – The investments can be done in the form of a Public Provident Fund, Equity Linked Saving Schemes or a premium for Life Insurance. The investments will count provided you have made those investments in the financial year.
• 80D – This deduction applies to health insurance premiums paid for self, Family, or parents. Ensure payment has been made and documentation for the payment is obtained as well.
• 80E – Applicable only if you are paying interest on an education loan. The loan should be taken specifically for higher education purposes.
• 80TTA/TTBB – These sections of the Income Tax Act (ITA) provide you with deductions for interest from savings accounts and fixed deposits. 80TTA applies to non-senior citizens, while 80TTB applies to senior citizens.

Filing accurate returns is not only complying with legal requirements but should also be viewed as responsible and good better practice. Never claim deductions unless you are sure. Claim Right, Claim Wise.