The last date for filing income tax returns (ITR) for FY 2023 is just a week away. The income tax department urges taxpayers to file the returns at the earliest and not wait for the last day to do the same. More than four crore income tax returns (ITRs) for the 2022-23 financial year have been filed so far and about 7 per cent of these are new or first-time filers, CBDT chairperson Nitin Gupta said on Monday.

Why individuals should file ITR way in advance?
Filing ITR in advance will give you ample time to evaluate all the deductions you can claim.There are different tax benefits under the Income Tax Act, of 1961 that can help you reduce your tax liabilities. Tax benefits like Standard Deduction , under Section 80C of the Income Tax Act, are well known. However, many more deductions are available under different sections of the Income Tax Act that you can claim to reduce your taxable income to the best possible limit.

Don’t forget to claim these six deductions while filing ITR 2023
1)Investments in National Pension Scheme (NPS)
You can claim tax benefits over and above the ₹1.5 lakh limit by investing in NPS. The maximum amount that can be invested is capped at ₹50,000. The benefit is available under Section 80CCD (1B).

2)Interest earned from savings account
Section 80TTA of the Income Tax Act makes an income of up to ₹10,000 per annum earned from savings accounts tax-free for taxpayers

3)Deductions for interest on education loan
Under Section 80E, you can claim a deduction of the interest paid on an education loan. You can avail of this on loan for the higher education of your spouse, children, or a student of whom you are a legal guardian. This deduction can be availed for a period of eight years starting from the year you start paying the loan.

4) Deductions made toward donations
Donations made to a fund backed by the central government can be fully claimed. For instance, if you donate to the Prime Minister’s Relief Fund, the Chief Minister’s Relief Fund, etc., you can claim a 100% deduction. However, in the case of others, you are eligible for a 50% deduction.

5) Preventive health check-ups
“One can avail up to ₹5,000 on preventive check-ups for self, dependent children, spouse, or parents below 60 years of age under Section 80D. For parents, 60 years or above, ₹ 7,000 can be claimed,” said Balwant Jain.

6) LIC, PPF deductions
Mumbai- based investment and tax expert Balwant Jain said that parents can claim LIC and PPF deductions when filing ITR for their children who are not dependent on them as well.

Source By: livemint

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