Most of us know about deductions under section 80C and about home loans only but there are few more deductions which can also be claimed.
1. GAINS FROM LOSSES IN STOCKS: You can set off your short term capital losses against long term capital gains from sale of property, gold or debt funds.
2. RENT IS DEDUCTIBLE IF NOT GETTING HRA: If you are not getting HRA from your employer then also you can claim deduction for rent under section 80GG. Maximum deduction under this section is 2000 per month.
3. CERTAIN DISEASES GET TAX BENEFITS: Illness including neurological diseases (dementia, chorea, aphasia,etc.), malignant cancers, full blown AIDS, chronic kidney failure and haematological disorders. In case of dependent deductions up to Rs 40,000 can be claimed under section 80DDB. And if patient is senior citizen maximum amount is Rs 60,000.
4. DONATIONS: Amount contributed to a recognised political party is considered as Donation under Income Tax Act. It can be claimed as a deduction under Section 80GGC (80GGB for corporate). This is a new deduction and was introduced in April 2010. Donations to charitable organisaitons are also eligible for tax deduction and range from 50% to 100% of the amount donated under section 80G.And there are several limits for donations to other organisations also.
5. EDUCATION LOAN INTEREST IS FULLY DEDUCTIBLE: The interest paid on education loan is fully deductible from taxable income under section 80E. Earlier this deduction was available to borrower to only but now it can be availed by parent or spouse.
6. INTEREST PAID ON SECOND HOME LOAN IS FULLY DEDUCTIBLE: Under Section 24b, one can claim a deduction of up to Rs 1.5 lakh a year for the interest paid. If the taxpayer buys a second house through another home loan and gives it on rent, the entire interest paid on the home loan during a given year can be claimed as deduction.
7. HRA AND HOME LOAN BENEFITS: You can claim both HRA exemption as well as tax benefits of a home loan. If you have taken a loan to build a house in your home town and live on rent in another city, you can claim both the HRA exemption as well as tax benefits for the interest paid on the home loan.