While you file your income tax returns for the FY 2017-18 (31 July deadline), you may have deductions that you can claim after you have filled details of your income from salary, house property, and other sources.
Start your income tax returns filing by registering and start e-filing on ITR-1 if you are a salaried individual. On completing the details on your income earned for the FY 2017-18, the form ITR-1 will arrive at your gross taxable income. This amount can be further deducted by claiming deductions under section 80C to 80U. Here are some most common deductions for individual salaried taxpayers liable to file returns using ITR-1 form:
The first three rows under 'Part C-deductions and taxable income' are investments or expenses that can be claimed under sections 80C, 80CCC, and 80CCD (1).
For FY 2017-18, you can claim a deduction up to Rs 1.5 lakh only under these sections. If you have made an investment in National Pension Scheme (NPS), you can claim an additional Rs 50,000 on it, which will make your total deduction limit under Section 80C to Rs 2 lakh.
|Deduction type||Deduction limits|
|Section 80C+80CCC+80CCD (1)||Cannot exceed Rs 1,50,000|
|Section 80CCD(1B)||Cannot exceed Rs 50,000|
|80CCD(2)||Cannot exceed 10% of basic salary|
Refer this article for all the investments eligible for deductions under section 80C and 80CCC.
Section 80CCD (1B) is the additional deduction on investments up to Rs 50,000 towards NPS, whereas 80CCD(2) is for deduction on employer's contribution and cannot exceed 10 percent of your basic salary.
You can claim deduction on health insurance premium payment upto Rs 25,000 for yourself, spouse and dependent children. If you also pay for a health cover for your parents, you can claim an additional Rs 25,000 (less than 60 years) or Rs 30,000 (if your parents are older than 60 years). If you are senior citizen yourself, you can claim deduction up to Rs 30,000 on your income.
If you have a disabled person dependent on you, you can claim expenses made towards them under this section. This also includes schemes from LIC or other insurer for taking care of a disable dependent. The dependent can be your spouse, child, parent (not in-laws) or sibling. The disability has to be mentioned in the IT act.
If the disability of the dependent is at least 40 percent, you can claim Rs 75,000, for 80 percent the maximum deduction is limited to Rs 1.25 lakh.
Under this section expenses made for oneself or a dependent to treat special diseases can be claimed for deduction. The limit on deduction depends on the age of the treated individual:
|Below 60 years||Rs 40,000|
|60 to below 80 years||Rs 60,000|
|80 years and above||Rs 80,000|
The deduction requires prescription from the specialist doctor that contains name, age, name of the disease of the patient. Further, it should include name, address, registration number and qualification of the doctor. Name and address of the hospital is also required if the treatment was undertaken in a government institute.
The total deduction amount arrived at under section 80DDB will be reduced by any reimbursements that you may have received from your employer or insurance company.
The interest you have paid on a higher education (graduation or post graduation) loan for yourself, your spouse or your children for the FY 2017-18 can be claimed for deduction under this section. There no limit on deduction but it can only be claimed up to 8 years from the time interest payment begins.
You can claim an additional deduction for FY 2017-18 on the interest paid by you on your home loan for up to Rs 50,000, if:
- The loan was sanctioned between 1 April 2016 and 31 March 2017.
- Loan amount does not exceed Rs 35 lakh
- Value of the house does not exceed Rs 50 lakh.
- It is your first house.
- You have exhausted your limit under "income from house property" head.
Your income from interest earned on savings accounts can be claimed for deduction up to Rs 10,000. Make sure you have mentioned the interest earned under the head "income from other sources."