Income tax filing can be a daunting task for many, but understanding the various sections under which you can claim deductions and exemptions can significantly reduce your tax liability. For the financial year 2023-24, there have been several updates and advantages in the income tax filing process that taxpayers should be aware of. This blog will guide you through the key sections under income tax filing for 2024, along with their benefits and recent updates.

1. Section 80C

   Overview: This is the most used section for claiming deductions. It allows a maximum deduction of up to ₹1.5 lakh per annum.

   Eligible Investments: Life insurance premiums, Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), and tuition fees for children, among others.

   Updates for 2024: No major changes have been announced for this section. It remains a robust tool for tax planning.

2. Section 80D

   Overview: This section allows deductions for medical insurance premiums.

   Limits: Up to ₹25,000 for individuals and ₹50,000 for senior citizens.

   Updates for 2024: The deduction for preventive health check-up remains within the overall limit of ₹5,000.

3. Section 24(b)

   Overview: Deduction on interest paid on home loans.

   Limit: Up to ₹2 lakh for self-occupied property.

   Updates for 2024: The government continues to encourage home ownership with this unchanged limit, providing substantial relief for taxpayers with home loans.

4. Section 80E

   Overview: Deduction on interest paid on education loans.

   Eligibility: Loans taken for higher education.

   Updates for 2024: No changes. The deduction continues for eight years or until the interest is fully paid, whichever is earlier.

5. Section 80G

   Overview: Deductions for donations to specified funds and charitable institutions.

   Eligibility: Various percentages (50% or 100%) depending on the type of institution.

   Updates for 2024: Streamlined procedures for claiming deductions have been introduced to ensure transparency and ease.

New Updates and Advantages

1. Introduction of New Tax Regime:

    The new tax regime introduced offers lower tax rates with no exemptions and deductions. Taxpayers can choose between the old regime (with deductions) and the new regime based on their financial planning and tax liabilities.

2. Enhanced Standard Deduction:

    The standard deduction for salaried individuals has been enhanced, providing additional relief against inflation.

3. Digital Tax Administration:

    The government has been focusing on digitizing the tax administration process. The new portal is designed to be more user-friendly, reducing the time and effort required for filing returns.

4. Pre-filled ITR Forms:

    To simplify the filing process, pre-filled ITR forms have been introduced. These forms will auto-populate information such as salary, FD interest, and dividends, minimizing errors and the burden of manual entry.

5. Extension of Time for Filing Belated/Revised Returns:

    The timeline for filing belated or revised returns has been extended, giving taxpayers more flexibility to correct errors.

Understanding the various sections under income tax filing and keeping up with the latest updates is crucial for effective tax planning. The 2024 tax filing season brings in some continuity with beneficial deductions like Section 80C and Section 24(b), while also enhancing digital and procedural aspects to simplify the process for taxpayers. By leveraging these sections and updates, you can optimize your tax liability and ensure a smooth filing experience.

Stay informed, plan, and make the most of the available deductions and exemptions to reduce your tax burden for the financial year 2023-24.