Major Tax Deductions available for Old and New Tax Regime for FY 2023-24

Filing your Income Tax Return (ITR) for the year 2023-24? Here are some tax deduction suggestions that you should know. They can reduce your tax liability. This applies under both old and new tax regimes.

Deductions in the Old Tax Regime

You can assert various tax deductions under the old tax regime. Here are some key sections to consider:

Section 80D

If you have paid a premium for health insurance for yourself or your family or parents then the deductions can be claimed on this by you. The limit is up to Rs.25,000 for yourself, spouses and children are also included. An additional Rs. 25000 for your parents below the age of 6o years. If your parents are senior citizens i.e. above 60 years, this limit increases to Rs.50000.

Section 80DD

You can claim for the medical treatment expenses of your dependent with disability. The maximum deduction is Rs.75000 for normal disability. Rs.1,25000 for severe disability.

Section 80DDB

If you have specified diseases then you can claim for the expenses under this section. The deduction limit is Rs.40000 for individuals below 60 years. Rs.1,00000 for senior citizens.

Section 80U

If you have a disability, you can claim a deduction of Rs. 75,000. For severe disability. The limit is Rs. 125,000

Section 80E

Interest paid on education loans for higher studies is fully deductible under this section. This deduction is available for a maximum of 8 years Or until interest is fully paid, whichever is earlier.

Section 80EE

Additional can be claimed if you are buying a house for the first time. This is over and above Rs.2 lakh limit under Section 24(b).

Section 80EEB

If you took a loan to purchase an electric vehicle you can claim a deduction. This deduction can be up to Rs.1,50000 on the interest paid.

Section 80G

Donations made to specified funds. Charitable institutions and certain relief funds can be claimed as deductions under this section.

Section 80GG

If you live in a rented house and do not receive HRA from your employer you can claim a deduction for rent paid. The maximum deduction is Rs.5,000 per month.

Section 80TTA and Section 80TTB

You can claim for deduction if you earned interest up to Rs.10,000 on the savings accounts. For senior citizens, the limit is Rs.50,000. Under Section 80TTB which includes interest from savings and fixed deposits.

Deductions in the New Tax Regime

You will also get lower tax rates in the new tax system. But it will provide less deductions and exemptions. The standard deduction for salaried employees and the deduction for employer contributions to NPS under section 80CCD (2) are among the few deductions available under the new tax regime.