ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs. 2.5 Lakh (if age is below 60)

A person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh.

Tax Liability is Nil if the taxable income is less than Rs. 5.0 Lakhs

Usually deducted from the gross salary and claimed as an exemption

Deduction for self- contribution to NPS – section 80CCD (1B) ; Max Upto 50,000/- Contributions to Atal Pension Yojana are also eligible

Life insurance premium + ULIP

Children Tuition Fees

Public Provident Fund(PPF)

EPF/VPF

National Pension Scheme(NPS)

ELSS(Mutual Fund tax savings schemes)

Tax saving FD/Term deposits(5yrs)

Home Loan Principal Amount

National Savings Certificate(NSC)

Sukanya Samriddhi Yojana(SSY)

Insurance for self, spouse and dependent children ;Upto Rs. 25,000

Additional deduction for insurance of parents

In case, both taxpayer and parent(s) are 60 years or above, the maximum deduction available under this section is up to Rs.1 lakh.

Received by the employee from his employer for travelling on leave

Available only on the actual travel costs not on local conveyance etc..

LTA exemption is available for only two journeys performed in a block of four calendar years

Block applicable for the current period is the calendar year 2018-21

“Electric vehicle” has been defined to mean a vehicle which is powered exclusively by an electric motor

Deduction for interest paid on loan taken for the purchase of electric vehicles from the AY 2020-21

Available only to individualsDeduction for interest payments up to Rs 1,50,000 is available

Loan must be sanctioned anytime during the period starting from 1 April 2019

Actual HRA received

Basic + DA(50% in Metro & 40% in Non - Metro)Delhi, Mumbai, Chennai and Kolkata

Actual Rent Paid - 10% of (Basic + DA)

Homeowners can claim a deduction of up to Rs.2 lakh on their home loan interest

Sub Topic

In order to claim deduction under Section 80EEA, you should not own any other house property on the date of the sanction of a loan.And the taxpayer should be a first-time home buyer.

Stamp duty value of the house property should be Rs 45 lakhs or less

It will be effective for affordable real estate projects approved on or after 1 September 2019

Deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA

Available only for 8 years starting from the year in which you start repaying the loan or until the interest is fully repaid whichever is earlier