Expenses in opposition to which you’ll declare earnings tax deductions

31 March is the final date for making tax saving investments for monetary yr 20-21. Those who haven’t achieved their tax saving investments for the yr could also be planning on doing it now as just a few days are left. However, this yr, lots of chances are you’ll be financially stretched on account of job losses or pay cuts and, subsequently, might not have surplus money to make these tax-saving investments. Also, it’s by no means a good suggestion to borrow cash to avoid wasting taxes. Therefore, we’re itemizing a few of the bills which, in case you are incurring, could be claimed as bills so that you simply don’t must make any extra funding if you’ll be able to exhaust your Section 80 C deduction after these bills. Tuition charges: Under Section 80C, you’ll be able to declare a deduction of as much as ₹1.5 lakh in opposition to tuition charges (excluding donations and growth charges) for as much as two kids in the course of the monetary yr. The charges might be paid to any college, college, school or another instructional establishment located in India. Remember that this deduction can’t be claimed in opposition to charges paid for teaching courses or hostel or mess bills. So, for instance, in case you are paying tuition charges of ₹60,000 for every of your two kids, you’ll be able to declare a deduction of ₹1,20,000 underneath Section 80C. Repayment in the direction of house mortgage principal: If you may have availed of a house mortgage, then you might be eligible to say a deduction of as much as ₹1.5 lakh underneath Section 80 C in opposition to the principal repaid in the course of the monetary yr. If you make the declare, simply keep in mind that you could’t promote the property inside 5 years of possession of the identical. If you promote the property, then the deduction claimed will likely be added again to the earnings within the yr of the sale. You may declare the stamp responsibility and registration expenses underneath the ₹1.5 lakh restrict. “This yr, if in case you have opted for EMI (equated month-to-month instalment) moratorium, the principal repaid will likely be much less as you didn’t pay any EMI throughout this era. Therefore, one must do not forget that deduction could be claimed in opposition to the precise principal paid and never what was due at first of the yr,” stated Prakash Hegde, a Bengaluru-based chartered accountant. Life insurance coverage premium paid: If you may have paid a life insurance coverage premium for self or partner, you might be eligible to say a deduction of as much as ₹1.5 lakh in opposition to the life insurance coverage premium paid underneath Section 80C. Subscribe to Mint Newsletters * Enter a sound e mail * Thank you for subscribing to our e-newsletter.