These forms are for those people and organizations whose annual income is up to Rs 50 lakh. It is important for taxpayers to understand some important sections of the Income Tax Act, 1961 while filing returns.

These sections can help you in correct tax calculation, availing deductions and choosing the right tax regime. Let us tell you about it…

Filing under section 139(1)

Let us tell you that under section 139(1), it is mandatory for those people and organizations whose income is above a certain limit to file their ITR within the prescribed time limit. Under this section, information has been given about the provisions for both mandatory and voluntary return filing.

Tax Saving under Section 80C

If you opt for the old tax regime, then section 80C gives you the opportunity to save your tax by investing in several tax saving schemes. For example, you can avail a deduction of up to Rs 1.5 lakh by investing in Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), tax saving FD and life insurance.

However, note that under the new tax regime, the benefit of section 80C is not available. But taxpayers opting for the new regime can avail a deduction of up to 10% on employer’s contribution to the National Pension Scheme (NPS) under section 80CCD(2).

Apart from this, there is a provision of tax deduction on contribution made to Agniveer Corpus Fund under Section 80CCH and under Section 80JJAA, eligible business entities can claim deduction on appointing new employees.

Section 24B

Taxpayers who are paying interest on home loan or home improvement loan can claim tax deduction under section 24B. The special thing is that this benefit is available under both the old and new tax regimes. In both regimes, you can avail a maximum tax exemption of up to Rs 2 lakh on home loan interest.

Section 10(13A)

Under this section, people living in rented houses can claim exemption on House Rent Allowance (HRA) if their rent is more than Rs 1 lakh per annum.

Section 80D

There is a provision for deduction on the premium of health insurance policies under section 80D. For those below 60 years of age, this limit is Rs 25,000, however, for senior citizens, this limit has been increased to Rs 50,000. Taxpayers can claim a maximum deduction of up to Rs 1 lakh by combining the premiums of their spouse, children and parents.

Section 234F

If you file ITR after the due date, there is a provision of penalty under section 234F. On filing the return late, a penalty of Rs 1,000 is applicable on those with income less than Rs 5 lakh and for those with income more than Rs 5 lakh, the penalty amount increases to Rs 5,000. Not only this, if you file ITR late, you may also have to pay interest charges under section 234A and 234B.

So if you are going to file ITR, keep in mind the above mentioned important sections. These sections will not only help you save maximum tax but will also make tax planning easier for you.

The post ITR Filing: Tax payers must know about sections 80C, 80D, 24B before filing ITR first appeared on Rightsofemployees.com.

In such a situation, it is important for taxpayers to understand the important sections of the Income Tax Act, 1961 which help in getting tax exemption and correct tax calculation.

Section 139(1): Mandatory to file ITR if income exceeds prescribed limit

Under Section 139(1), it is mandatory for any person or entity to file income tax returns if their annual income exceeds a prescribed limit. This section also applies in cases where the return is filed voluntarily.

Section 10(13A): HRA exemption on rented house

If a person lives in a rented house and pays rent of more than ₹ 1 lakh annually, he can avail tax exemption on House Rent Allowance (HRA) under section 10(13A). For this, some rules have to be followed.

Section 80C: Deduction up to ₹1.5 lakh on tax saving investments

Taxpayers following the old tax regime are eligible to get a deduction of up to ₹1.5 lakh on investments such as PPF, EPF, ELSS, tax saving FD, and life insurance premium under section 80C. However, this exemption is not available in the new tax regime.

The new system allows deduction of up to 10% of employer’s contribution to NPS only under section 80CCD(2). Apart from this, deduction can be claimed on certain expenses under sections 80JJAA and 80CCH.

Section 80D: Deduction up to ₹1 lakh on health insurance

Tax exemption on premiums paid on health insurance is available under section 80D. If the taxpayer and his family members are below 60 years of age, the maximum exemption is up to ₹25,000. For those aged 60 years or above, the limit is ₹50,000. There is a separate exemption for parents, which can take the total exemption to ₹1 lakh.

Section 24B: Home loan interest deduction up to ₹2 lakh

Interest paid on home loan or home improvement loan is eligible for deduction up to a maximum of ₹2 lakh under section 24B. This deduction is available in both the old and new tax regimes.

Section 234F: Penalty for late filing of ITR

If a person files ITR after the due date, then a penalty is imposed on him under section 234F. For those with income less than ₹5 lakh, this penalty is ₹1,000, while for those with income more than ₹5 lakh, the penalty can be up to ₹5,000. Apart from this, interest may also have to be paid under sections 234A and 234B.

Know from the experts who are required to file ITR? (Applicable only to individual taxpayers)

According to tax expert Balwant Jain, under various provisions of the Income Tax Act, it becomes mandatory for individual taxpayers to file ITR in certain situations, even if their total income does not fall under the scope of tax liability. Let us know in which cases it is necessary to file ITR:

1. Gross income exceeds the basic exemption limit

It is mandatory to file ITR if your total income (before deductions under sections 80C, 80D, 80G, etc.) exceeds the following limits:

General individual: ₹2.5 lakh

Residents above 60 years of age: ₹3 lakh

Residents above 80 years of age: ₹5 lakh

Equal exemption for all in new tax regime: ₹3 lakh

Long term capital gains (LTCG) will also be added to this.

2. Have property or signature authority abroad

If you are a resident taxpayer in India and:

You have any property in your name abroad (even if there is no balance amount)

If you have a foreign bank account or share in a property or have signature authority, it
is mandatory for you to file ITR.

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The post ITR filing 2025: Key Benefits and Penalties related to 80C, 80D, 24B and HRA first appeared on Rightsofemployees.com.

New Delhi. The process of filing income tax returns for the financial year 2024-25 is now going to start. The Income Tax Department has also notified ITR-1 and ITR-4 forms for the assessment year 2025-26. These forms are for individuals and entities whose annual income is up to ₹ 50 lakh. Taxpayers need to be aware of some important sections of the Income Tax Act, 1961 while filing returns. Understanding these helps in calculating tax, understanding deductions and choosing a tax regime.

Every taxpayer should know about Section 80C of the Income Tax Act. Taxpayers who opt for the old tax system can avail tax deduction of up to ₹1.5 lakh under Section 80C. This includes investments such as Public Provident Fund (PPF), Employees Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), tax saving fixed deposits and life insurance premium. However, there is no deduction under Section 80C in the new tax system. However, under Section 80CCD(2), one can avail deduction of up to 10% on contributions made by the taxpayer’s employer to the National Pension Scheme (NPS).

Section 24B

If you have taken a loan for a house, then you can get tax exemption of up to Rs 2 lakh on its interest. This exemption is available under section 24B of the Income Tax Act. This exemption is available in both tax regimes. Therefore, it is important for you to know about this section.

Section 10(13A)

Income tax payers who live in a rented house and are paying rent of more than ₹ 1 lakh per annum can avail exemption on House Rent Allowance (HRA) under Section 10(13A). This exemption is especially beneficial for eligible persons.

Section 80D

Section 80D provides for a deduction on health insurance premium. For those below 60 years of age, the limit is ₹25,000, while senior citizens get a deduction of up to ₹50,000. A maximum deduction of up to ₹1 lakh can be claimed by combining the premiums of family and parents.

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The post ITR Filing: 80C, 80D, 24B…Before filing ITR, you must know about these sections first appeared on Rightsofemployees.com.