The last date to file IT returns is 31st July 2018. Various penalties will be levied on non filing before the due date (Read: Benefits of filing an ITR). However, we have listed 5 ways where you can save taxes by filing IT returns this year. They are;
Section 80D – Insurance: Previously, Section 80D allowed tax deduction on insurance premium paid during the year up to 30,000 INR. This year, you can avail deductions up to 50,000 INR.
Section 80TTB – Bank Interest: For senior citizens, a tax benefit has been introduced under section 80TTB in the IT Act. This allows a deduction up to 50,000 INR on interest earned from bank deposits.
Section 80DDB – Critical Illness expenses: You can avail deductions on expenses paid for treatment of critical illness worth 100,000 INR for super senior citizens, senior citizens and 40,000 INR for people aged below 60 years. Earlier, this limit was 80,000 INR, 60,000 INR and 40,000 INR respectively.
Standard deduction: The two deductions; transport and medical are now commonly termed as standard deduction. 40,000 INR deductions can be availed under transport and medical expenses. Earlier, this limit was 34,200 INR.
Gratuity: Every taxpayer receiving gratuity on or after 1st April 2018 can avail a tax exemption on gratuity worth 20,00,000 INR. Earlier, the limit was set at 10,00,000 INR.
In conclusion, filing ITR is important as it helps you maintain a record and some institutions demand ITR prior to approving your loan. This post can help you understand various ways you can save tax by filing your returns on time.