ITR Filing 2024: Income tax savings above Rs 1.5 lakh limit? Additional Rs 75k benefit - Know how

 

ITR Filing 2024: One of the ways by which income tax return filers can claim an additional deduction of Rs 50,000 under Section 80CCD (1B) of the Income Tax Act, 1961. Yes, this is over and above the overall limit of Rs 1.5 lakh under Section 80C. Using another way, the benefit could be of Rs 75,000.

ITR Filing 2024: Income tax savings above Rs 1.5 lakh limit? Additional Rs 75k benefit - Know how

ITR Filing 2024: The income tax filing season is on and so is the search for tax saving instruments and ways by taxpayers and salaried individuals. It is simple maths that the higher the deduction an individual can apply on their income, the lesser will be their net taxable income.
While it is a commonly known and understood fact that taxpayers can claim and income tax deduction of up to Rs 1.5 lakh under the old tax regime, only a few would know that there are avenues by which they can claim additional income tax benefits, over and above the Section 80C limit of Rs 1.5 lakh.

Income Tax Savings

One of the ways by which income tax return filers can claim an additional deduction of Rs 50,000 under Section 80CCD (1B) of the Income Tax Act, 1961. Yes, this is over and above the overall limit of Rs 1.5 lakh under Section 80C.
Other than that, individuals can also do so using their health or medical insurance, which is a must have for every individual. You can deduct medical insurance premiums under Section 80D of the Income-tax Act, 1961 if you have purchased policies for your parents, yourself, or your family.
It is worth mentioning here that the Section 80D deduction is available only under the old income tax regime.

Income Tax Savings Using Section 80D

An individual under the age of 60 years and has paid a premium of health insurance for themself, their spouse, and dependent children, they can claim a deduction of Rs 25,000 under Section 80D. If they pay premiums of the health insurance policy for their parents who are below the age of 60, an additional tax deduction of Rs 25,000 can be claimed.
Further, if the individual’s parents are senior citizens (above 60 years), they can claim a tax deduction of Rs 50,000 for paying the premium of their health insurance policies
Hence, taxpayers below the age of 60 years who pay health insurance premiums for their senior citizen parents, can easily claim a maximum tax deduction of up to Rs 75,000 under Section 80D.
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