3) Deductions on Rent Paid –

House Rent Allowance (HRA) are eligible for tax deductions. HRA is covered under Section 80GG of the IT Act. According to this, all people, both salaried and business people, are eligible for this. Deductions can be claimed for both, furnished and non-furnished houses. The details of this deduction are – minimum of 2,000 per month or 25 percent of one’s total income, the lesser amount being considered. Deductions are available for only those houses which are located in municipal areas, though most prominent cities are a part of these areas. This claim can be availed by filling out Form 10-BA.

4) Disabled People –

There are 3 categories for availing tax deductions under disability. First, section 80DD provides a deduction of 50,000 for a disabled person undergoing medical treatment. Second, 75,000 is deducted from taxes, in case of very grave medical situations. Third, Section 80DDB covers 40,000 for specific diseases. Senior citizens receive 60,000 deductions under this section. Section 80U also covers for 50,000 for a disabled person, with an enhanced cover of 75,000.