Mumbai, January 21: Employers are collecting income tax investment proofs between January and March to facilitate accurate tax computations and rebate claims for the financial year 2024-25. The submission of these proofs is a vital step in determining final tax liabilities. While the general deadline for submission is March 31, 2025, specific timelines may differ across organizations.

Submitting income tax investment proofs for the financial year 2024-25 is a crucial step to ensure accurate tax calculations and claim eligible rebates. At the beginning of the financial year, employees provide details of their intended investments through IT Savings Declaration forms. As the year concludes, finance teams review these declarations alongside the necessary supporting documents to accurately determine final tax liabilities. What Is the Current Income Tax Rate in India? Ahead of Budget 2024-25, Know Income Tax Slabs, Rates Under Old and New Regimes.

Deductions Under Section 80C

Section 80C allows taxpayers to claim deductions of up to INR 1.5 lakh, promoting savings and investments. Eligible options include the Public Provident Fund (PPF), National Savings Certificate (NSC), and Equity Linked Savings Scheme (ELSS). These deductions are applicable to both individuals and Hindu Undivided Families (HUFs), covering Indian residents as well as non-resident Indians. However, this benefit is not available to companies, partnerships, or other corporate entities. ITR Filing Deadline: Last Day To File Belated Income Tax Returns Today, Know Penalty for Late Submission and How To File ITR.

Deductions Under Section 80CCD

Section 80CCD offers deductions for individuals contributing to the National Pension Scheme (NPS) or the Atal Pension Yojana (APY). It also includes contributions made by employers to the NPS. Additionally, taxpayers can claim an extra deduction of INR 50,000 for investments in the NPS.

Deductions Under Section 80D

Health insurance premiums paid for oneself, a spouse, dependent children, or parents are eligible for tax deductions under Section 80D. Individuals below 60 years can claim up to INR 25,000, while senior citizens (60 years and above) can claim up to INR 50,000. Additionally, if the parents are senior citizens, an extra deduction of INR 50,000 is available, bringing the total possible deduction to INR 1,00,000 for individuals and their parents.

Deductions Under Section 80G

Donations made to certain relief funds and charitable organizations are eligible for deductions under Section 80G. However, not all donations qualify for these deductions. Only contributions to prescribed funds are eligible for tax benefits under this section.

(The above story first appeared on LatestLY on Jan 21, 2025 11:54 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).