Tax Deductions That Can Protect Your Nest Egg

It may come as a surprise to you, but it is true that there are a number of tax deduction benefits that we as taxpayers forget to claim. Here are some valuable tax deductions that you shouldn’t overlook.

Tax Deduction: Deduction Benefits Usually Overlooked

In our daily lives, we incur a variety of expenses, be it in respect of interest on loan, education, charity or medical treatment. Many of such expenses can be claimed as tax deductions as per Income Tax act.

Here are some of these deduction benefits:

Tuition fee paid for child’s education

A tax payer can claim deductions in terms of tuition fee paid for the education of one's children.  Section 80C of the Income Tax Act provides that one can claim deduction for the tuition fee paid for the full-time education of one’s children during admission or later to any other educational institute situated in India.

Interest paid on loan taken for higher studies

Many taxpayers are not aware that section 80E of the Income Tax act enables them to claim deduction on the interest on loan taken for higher studies for themselves, spouse, children or students for whom they are act as legal guardians. It must be noted that one can enjoy deduction benefit on interest for not more than eight years or till the interest has been paid off.

Home improvement

Sometimes taxpayers forget to claim deductions in respect of money spent on home improvement. If you have incurred expenses on maintenance or repair of your house or have taken loan for the same, you are entitled to deduction benefit while calculation income from house property.

Disability benefit

The Income Tax Act provides that a person with disability and certified to be so by a prescribed medical authority is entitled to a deduction of Rs.50, 000. Moreover, an individual certified to be suffering from severe disability can claim deduction of Rs.75, 000.