Before claiming any deductions, it's crucial to understand the eligibility criteria set by the Income Tax Department. Different sections of the Income Tax Act provide deductions for specific expenses such as medical insurance premiums, education expenses, or home loan interest. To be eligible for the deductions, make sure you satisfy the conditions listed in each section.
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Proper Documentation
You may be required to submit documents such as investment proofs, medical bills, home loan interest certificates, or donation receipts. Make sure you have scanned copies or digital versions of these documents that can be uploaded or attached as necessary during the online filing process.
Timely Filing
To claim deductions, it is important to file your tax return within the specified due dates. Failure to file your return on time may result in the loss of certain deductions or penalties. Stay informed about the due dates for filing your return.
Accurate Reporting
When filing taxes online, accuracy in reporting is crucial. Double-check all the details you enter, including income, expenses, and deductions. Any incorrect or inaccurate information may lead to complications, delays, or even penalties. Review your return thoroughly before submission to ensure the information provided is correct and matches the supporting documentation.
Restrictions on Certain Deductions
Deductions under Section 80C for investments in specified financial instruments have a maximum limit of Rs. 1.5 lakh per financial year. Similarly, deductions for home loan interest under Section 24(b) have a limit of Rs. 2 lakh per financial year for self-occupied properties. Familiarise yourself with these restrictions to ensure you optimise your deductions within the prescribed limits.
While there are no specific restrictions on claiming deductions when filing online, it's essential to understand the limitations and maximum limits that may apply to certain deductions. By adhering to these guidelines and being diligent in your tax filing process, you can optimise your deductions and meet your tax obligations effectively.
