Did you know, as a taxpayer, you can claim a tax deduction on the interest you pay on loan borrowed for higher studies for yourself, your children or your spouse under section 80E? And there’s no upper limit on the deduction under this section! If you hadn’t, you know it now. But here are a few more overlooked or lesser-known tax deductions in India.
Parents Medical Expenses
Taxpayers, who pay medical bills for parents aged 60 years or above, and are not covered by medical insurance, can claim a deduction for it. Section 80D allows taxpayers to claim a deduction of up to Rs. 50,000 on medical expenses.
But there’s a condition. Taxpayers can claim these expenses only if they have paid them in any mode other than cash. Those who had to pay the money in cash due to unavoidable circumstances can also claim a tax deduction. But they will have to provide a proper explanation for the cash payment.
Stamp Duty on Property Purchase
While taxpayers can claim a deduction on principal repayment on home loans under Section 80C, they can also claim the stamp duty they’ve paid on property purchases.
But taxpayers often forget to claim a deduction on reinvested interest on the National Savings Certificate (NSC). NSC interest isn’t paid every year. It gets reinvested. Taxpayers can claim a deduction on the reinvested interest.
Preventive Medical Tests
Only a few taxpayers can claim a deduction on preventive health checkup expenses. For parents 60 years or above, taxpayers can claim Rs. 7,000 under preventive health checkups. Medical tests conducted to detect the possibility of diseases are considered preventive health checkups.
While this is an overview of the various overlooked tax deductions, consulting a tax expert can help you understand the technicalities, conditions, etc., involved.