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Additional Income Tax Deductions for Individuals for the FY 2021-2022



As per income tax rates the income above 10 Lacs is subject to 30% tax if you select Old regime. If your income has exceeded more than 10 Lacs you have entered in 30% slab. So I would give you some deductions which you can claim by investing and can save tax upto 30%.

1)      Section 80CCD (1b): Contribution to pension schemes as notified by the central government (Self investment in Tier-1 of NPS). This section provides additional deduction of 50000. This has a fixed lock-in period until the subscriber reaches the age of 60 years.

2)      HRA Exemption(Salaried Employees): If you are living in a rented house of Rs.20,000/-p.m and submit hose rent receipts to your company, you can claim HRA exemption upto 100000.

3)      Housing Loan Interest: You can claim interest on housing loan upto 200000. every year. This is the most beneficial deduction for higher tax payer, because by claiming deduction of 200000 you can save tax upto 30%. Even if you are being charged with an interest rate of 10% on housing loan interest, it would result in a saving of 20% tax. You can own a property by taking housing loan and however its value will be always increasing.

4)      Sec 80EEA: This section allows additional dedution of housing loan interest upto 150000, but there are some conditions to claim this deduction. Those are

a)      Housing loan must be taken from a financial institution or a housing finance company for buying a residential house property.

b)      Stamp duty value of the house property should be Rs 45 lakhs or less.

c)      The taxpayer should be a first-time home buyer. The taxpayer should not own any residential house property as on the date of sanction of the loan.

d)      Carpet area of the house property should not exceed 60 square meter ( 645 sq ft) in metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region)

e)      Carpet area should not exceed 90 square meter (968 sq ft) in any other cities or towns.

5)      Sec 80EEB: A deduction for interest payments up to 150000 is available under Section 80EEB. An individual taxpayer may have an electric vehicle for personal use or for business use

a)      The loan must be taken from a financial institution or a non-banking financial company for buying an electric vehicle.

b)      The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31 March 2023.       



 

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