Income Tax Return 2026: These 6 Forgotten Deductions Could Help Reduce Your Taxable Income
Filing an Income Tax Return is not only about reporting your income and paying the tax due. Taxpayers also need to review the deductions and exemptions they may be eligible to claim. Several commonly used investments, insurance payments, loan interest costs and donations can qualify for tax benefits under the old tax regime. However, the availability of these deductions depends on the applicable rules and the tax regime selected. Before submitting your ITR, it is important to compare your options carefully and keep the necessary documents ready.
Many deductions discussed below are associated with the old tax regime. Taxpayers opting for the new tax regime may not be able to claim several of these benefits, subject to the applicable provisions.
According to tax experts, comparing the tax liability under both regimes before filing can help taxpayers make a more informed choice. The regime offering the lowest overall tax outgo may vary depending on income, investments, insurance premiums, loans and other eligible deductions.
Eligible taxpayers can claim deductions of up to ₹1.5 lakh under this section, subject to the applicable conditions. The list includes several popular savings and investment avenues, such as the Public Provident Fund (PPF), Employees' Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), tax-saving fixed deposits and Sukanya Samriddhi Yojana.
Certain life insurance premiums and children's tuition fees may also qualify. In addition, repayment of the principal component of a home loan can be eligible under this section.
Taxpayers should review their financial records before filing to ensure that eligible investments or payments have not been left out of the return.
The provision allows an additional deduction of up to ₹50,000, over and above the ₹1.5 lakh limit available under Section 80C, subject to the applicable rules.
This means eligible taxpayers may potentially claim total deductions of up to ₹2 lakh through the combined benefit of Section 80C and the additional NPS deduction.
However, taxpayers should ensure that the contribution and supporting details are correctly reported while filing their return.
Under Section 80D, eligible health insurance premiums paid for oneself, a spouse, dependent children and parents may qualify for deductions. The amount available can vary depending on the age of the insured individuals and the specific circumstances.
The deduction limit can range from ₹25,000 to ₹1 lakh under the applicable provisions, with higher benefits generally available in cases involving senior citizens.
Taxpayers should retain premium payment records and other relevant documents. The payment method and other conditions prescribed under the tax rules also need to be satisfied for claiming the deduction.
Section 80E applies to the interest component rather than the principal repayment. One notable feature of this provision is that there is no specified monetary ceiling on the interest amount that can be claimed, subject to the conditions and period prescribed under the law.
Students or borrowers who are repaying an eligible education loan should therefore check their loan statements before completing their ITR. The interest certificate issued by the lender can be particularly useful while preparing the return.
The amount of deduction depends on the recipient organisation and the category under which the donation qualifies. In applicable cases, the deduction may be 50 per cent or 100 per cent of the eligible donation amount, subject to the relevant conditions and limits.
It is important to retain the donation receipt and relevant details of the organisation. Taxpayers should also verify that the recipient is eligible for the deduction being claimed before including the amount in their return.
Under Section 24(b), eligible taxpayers may claim a deduction of up to ₹2 lakh on interest paid on a home loan for a self-occupied property, subject to the applicable conditions.
The principal repayment is treated separately and may qualify under Section 80C, within the overall limit applicable to that section.
This distinction is important because taxpayers sometimes consider the entire home loan repayment as a single deduction. Reviewing the annual loan statement can help identify the separate components correctly.
Form 16, the Annual Information Statement (AIS) and Form 26AS should be checked carefully for discrepancies. Any mismatch between reported income, tax deducted and information available in these records should be reviewed before submitting the return.
Investment proofs, insurance premium receipts, NPS contribution details, loan interest certificates and donation documents should also be kept available wherever relevant.
Before submitting the ITR, taxpayers should verify details such as their name, Permanent Account Number (PAN), contact information and bank account details. The bank account selected for any eligible tax refund should also be checked carefully.
Once the return has been submitted, e-verification is an important final step. A return that is not verified within the applicable time may face consequences under the relevant income tax rules.
Before filing ITR 2026, taxpayers should compare the old and new tax regimes, review their eligible investments and expenses, check supporting documents and verify the information reflected in their tax records. A careful review can help reduce errors and ensure that eligible deductions are not overlooked.
Disclaimer: This content is for informational purposes only. Tax rules, deduction limits and eligibility conditions may change. Taxpayers should verify the latest applicable provisions and seek professional advice where necessary.
First Check Which Tax Regime You Are Using
The tax regime you choose can significantly affect which deductions and tax benefits you can claim.Many deductions discussed below are associated with the old tax regime. Taxpayers opting for the new tax regime may not be able to claim several of these benefits, subject to the applicable provisions.
According to tax experts, comparing the tax liability under both regimes before filing can help taxpayers make a more informed choice. The regime offering the lowest overall tax outgo may vary depending on income, investments, insurance premiums, loans and other eligible deductions.
Section 80C Can Cover Several Common Investments
Section 80C is among the most widely used provisions for tax-saving investments and expenses.Eligible taxpayers can claim deductions of up to ₹1.5 lakh under this section, subject to the applicable conditions. The list includes several popular savings and investment avenues, such as the Public Provident Fund (PPF), Employees' Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), tax-saving fixed deposits and Sukanya Samriddhi Yojana.
Certain life insurance premiums and children's tuition fees may also qualify. In addition, repayment of the principal component of a home loan can be eligible under this section.
Taxpayers should review their financial records before filing to ensure that eligible investments or payments have not been left out of the return.
NPS Can Provide An Additional Deduction
Taxpayers who contribute to the National Pension System (NPS) may be able to claim an additional deduction under Section 80CCD(1B).The provision allows an additional deduction of up to ₹50,000, over and above the ₹1.5 lakh limit available under Section 80C, subject to the applicable rules.
This means eligible taxpayers may potentially claim total deductions of up to ₹2 lakh through the combined benefit of Section 80C and the additional NPS deduction.
However, taxpayers should ensure that the contribution and supporting details are correctly reported while filing their return.
Health Insurance Premiums May Offer Tax Benefits
Medical insurance payments are another area taxpayers should review.Under Section 80D, eligible health insurance premiums paid for oneself, a spouse, dependent children and parents may qualify for deductions. The amount available can vary depending on the age of the insured individuals and the specific circumstances.
The deduction limit can range from ₹25,000 to ₹1 lakh under the applicable provisions, with higher benefits generally available in cases involving senior citizens.
Taxpayers should retain premium payment records and other relevant documents. The payment method and other conditions prescribed under the tax rules also need to be satisfied for claiming the deduction.
Education Loan Interest Can Be Claimed Under Section 80E
Individuals who have taken an education loan for higher studies may be eligible for a deduction on the interest paid on the loan.Section 80E applies to the interest component rather than the principal repayment. One notable feature of this provision is that there is no specified monetary ceiling on the interest amount that can be claimed, subject to the conditions and period prescribed under the law.
Students or borrowers who are repaying an eligible education loan should therefore check their loan statements before completing their ITR. The interest certificate issued by the lender can be particularly useful while preparing the return.
Donations May Qualify For Deduction Under Section 80G
Taxpayers who make donations to eligible charitable institutions, approved organisations or specified relief funds may be able to claim a deduction under Section 80G.The amount of deduction depends on the recipient organisation and the category under which the donation qualifies. In applicable cases, the deduction may be 50 per cent or 100 per cent of the eligible donation amount, subject to the relevant conditions and limits.
It is important to retain the donation receipt and relevant details of the organisation. Taxpayers should also verify that the recipient is eligible for the deduction being claimed before including the amount in their return.
Home Loan Interest Is Separate From Principal Repayment
Home loan borrowers should distinguish between the principal and interest components of their repayment.Under Section 24(b), eligible taxpayers may claim a deduction of up to ₹2 lakh on interest paid on a home loan for a self-occupied property, subject to the applicable conditions.
The principal repayment is treated separately and may qualify under Section 80C, within the overall limit applicable to that section.
This distinction is important because taxpayers sometimes consider the entire home loan repayment as a single deduction. Reviewing the annual loan statement can help identify the separate components correctly.
Documents Should Be Checked Before Filing
Taxpayers should not wait until the final stage of ITR filing to gather their financial records.Form 16, the Annual Information Statement (AIS) and Form 26AS should be checked carefully for discrepancies. Any mismatch between reported income, tax deducted and information available in these records should be reviewed before submitting the return.
Investment proofs, insurance premium receipts, NPS contribution details, loan interest certificates and donation documents should also be kept available wherever relevant.
You may also like
- Over 500% jump! Why CXMT skyrocketed on stock market debut to become China's most valuable listed company
- ITR Filing 2026: You Can File Your Income Tax Return Without a CA—But Keep These Things in Mind
- Discount, premium, discount, premium: How Russian crude prices swung as India stepped up procurement amid US-Iran war
- Gold rate today: 24k vs 22k vs 18k prices
- Dreamfly Innovations to build 100 MWh aviation battery plant to support Make in India, Atmanirbhar Bharat
Review Your Bank And Personal Details
Incorrect personal or banking information can create avoidable problems after filing.Before submitting the ITR, taxpayers should verify details such as their name, Permanent Account Number (PAN), contact information and bank account details. The bank account selected for any eligible tax refund should also be checked carefully.
Once the return has been submitted, e-verification is an important final step. A return that is not verified within the applicable time may face consequences under the relevant income tax rules.
A Final Check Can Help Avoid Missed Benefits
Tax deductions can make a difference to the final tax calculation, but they should only be claimed when the taxpayer meets the applicable eligibility conditions.Before filing ITR 2026, taxpayers should compare the old and new tax regimes, review their eligible investments and expenses, check supporting documents and verify the information reflected in their tax records. A careful review can help reduce errors and ensure that eligible deductions are not overlooked.
Disclaimer: This content is for informational purposes only. Tax rules, deduction limits and eligibility conditions may change. Taxpayers should verify the latest applicable provisions and seek professional advice where necessary.
Loving Newspoint? Download the app now
