2. Rent Is Deductible Even If You Don't Get HRA

The purpose of HRA is to offer tax benefits to employees. What about tax payers who don't get HRA? Self employed professionals and businessmen can also get deductions up to a maximum of 2,000 a month under Section 80GG. The following conditions have to be satisfied.

A spouse or a minor child cannot own a house in the same city and the tax payer cannot claim tax benefit for another self occupied house.

Also, only the lowest amount from the following can be claimed:

a) 2,000 a month.

b) 25 percent of the total income.

c) Rent paid, less 10 percent of total income.

3. Certain Diseases are Allowed for Tax Benefits

Some diseases are prolonged and expensive. The claim for deductions can be made even if it is a dependant suffering from such illnesses. Up to 40,000 can be deducted from the assessee's total income, and up to 60,000 for senior citizens. The deduction is not applicable if the medical fees are reimbursed by an employer or by an insurance company. However the difference in the reimbursement can be claimed.

Under Section 80DDB, many ailments are covered, including neurological diseases, Cancer, AIDS and Kidney failure.