10 Tax Deductions You Probably Didn’t Know About

Taxes are unavoidable. But paying more than necessary? That’s avoidable. Many individuals and small business owners in India miss out on legal and beneficial tax deductions simply because they don’t know about them.

At Makwana Sweta & Associates, a reputed firm offering Chartered Accountant Services in Mumbai, we believe in empowering taxpayers with awareness. Here’s a carefully curated list of 10 tax deductions in India you might not be using to your full advantage.

1. Section 80GG: Deduction for Rent Paid Without HRA

Don’t receive House Rent Allowance (HRA)? You can still claim rent deduction under Section 80GG up to Rs. 60,000 per year.

Eligibility:

You must be paying rent.
You should not own residential property at your current location.

Calculation:
The least of the following is allowed:

Rs. 5,000 per month
25% of total income
Actual rent paid minus 10% of income

2. Section 80E: Education Loan Interest Deduction

You can claim the entire interest paid on education loans for higher education (India or abroad) for up to 8 years.

Key Points:

No cap on interest amount
Can be for self, spouse, children, or legal ward

Transition Tip: Include this in your ITR even if the EMI is paid by the parent.

3. Section 80EEA: Home Loan Interest for First-Time Buyers

In addition to Section 24(b), you can claim an extra deduction of Rs. 1.5 lakh under 80EEA on home loan interest.

Condition:

Property value must not exceed Rs. 45 lakh
Loan must be sanctioned between April 1, 2019, and March 31, 2022 (extended in past budgets)

Updated Note (2025): Refer to Budget 2025 updates on the Income Tax India Portal for extended timelines.

4. Section 80DDB: Treatment for Specified Diseases

You can claim deductions for medical treatment of specific diseases like cancer, chronic renal failure, etc.

Deduction Limits:

Rs. 40,000 (General)
Rs. 1,00,000 (Senior Citizens)

Pro Insight: A certificate from a specialist doctor is mandatory. Many tax consultants in Mumbai overlook this during filings.

5. Section 80GGA: Donations to Rural Development & Scientific Research

Donations made to certain approved institutions for scientific research or rural development qualify for 100% deduction.

Applicable For:

Individuals with no business income
Must be made via modes other than cash (if exceeding Rs. 2,000)

6. Section 80TTA & 80TTB: Interest on Savings Account

80TTA:

Deduction up to Rs. 10,000 for savings account interest (Non-senior citizens)

80TTB:

Deduction up to Rs. 50,000 for senior citizens

CA Tip: If you’re filing with a CA in Mumbai, they’ll help allocate this deduction accurately while filing your ITR.

7. Section 80CCD(1B): NPS Contributions

Besides the 80C limit, an additional Rs. 50,000 is allowed under 80CCD(1B) for contributions to the National Pension Scheme.

Why It Matters: You save tax AND build a retirement corpus with government support.

Real Example: A client from Andheri saved Rs. 15,600 annually just by switching from FD to NPS.

8. Section 24(b): Interest on Home Loan

Don’t confuse this with 80EEA. Section 24(b) allows a deduction of up to Rs. 2 lakh for home loan interest for self-occupied properties.

Key Requirements:

Construction must be completed within 5 years from the end of the financial year in which the loan is taken.

9. Section 10(14): Uniform, Daily & Conveyance Allowance

Certain employer-paid allowances are exempt from tax:

Uniform Allowance
Conveyance Allowance
Daily Allowance for travel

Use This If: You’re in field jobs or have travel-intensive roles.

10. Section 80U: Deduction for Persons with Disability

If you suffer from a disability (minimum 40% as certified by a medical authority), you can claim:

Rs. 75,000 (Normal disability)
Rs. 1,25,000 (Severe disability)

BONUS: Claim All With Proper Documentation

Each of these deductions can make a big difference in your total tax liability. However, they require proper documentation, calculation, and sometimes certifications. Partner with a trusted firm like Makwana Sweta & Associates to ensure maximum compliance and savings.

Looking for a Chartered Accountant in Mumbai who understands tax intricacies? We offer comprehensive Chartered Accountant Services Mumbai designed for individuals, MSMEs, and startups.

Inbound & Outbound Links

Inbound: Understanding Advance Tax
Outbound: Income Tax Department Portal – Deduction List

Conclusion:
When it comes to tax savings, information is power. Use these lesser-known tax deductions in India to optimise your tax outgo and improve your financial health. Stay informed. Stay compliant.