Understanding the Income Tax Old Regime

Image Credit: News 18

If you are planning to file your income tax return (ITR) under the old tax regime in India, it is essential to know about the various deductions available to you. These deductions can help you reduce your taxable income, thereby lowering your tax liability.

Here are some key deductions you should keep in mind:
1. Section 80C: This section allows you to claim deductions of up to Rs. 1.5 lakh on investments made in schemes like Public Provident Fund (PPF), National Pension System (NPS), and Equity Linked Saving Scheme (ELSS).
2. Section 80D: This section allows you to claim deductions on the premium paid towards health insurance policies for yourself, your spouse, and your dependent children. The maximum deduction allowed is Rs. 25,000, which can be increased to Rs. 50,000 if you are a senior citizen.
3. Section 80G: This section allows you to claim deductions on donations made to charitable organizations. The amount of deduction depends on the type of organization and can be up to 100% of the donated amount.
4. Section 80TTA: This section allows you to claim deductions of up to Rs. 10,000 on the interest earned on your savings account.
5. Section 80E: This section allows you to claim deductions on the interest paid towards education loans taken for yourself, your spouse, or children. The deduction is available for a maximum of 8 years.
6. Section 80CCC: This section allows you to claim deductions on contributions made towards annuity plans offered by insurance companies.
7. Standard deduction: Rs 50,000 for salaried individuals (Also available in the new tax regime)

Re-reported from the story originally published in News 18