India tax season: key deductions, verification steps and penalties
During the Indian income‑tax return filing period, taxpayers can reduce their liability by claiming deductions under the old tax regime. Section 80C allows up to ₹1.5 million for investments such as Public Provident Fund, EPF, ELSS, National Savings Certificates, Sukanya Samriddhi and life‑insurance premiums. An additional ₹0.5 million can be claimed under Section 80CCD(1B) for contributions to the National Pension System, bringing the combined limit to ₹2 million. Health‑insurance premiums qualify for a deduction under Section 80D ranging from ₹25,000 to ₹1 million depending on family composition and senior‑citizen status. Interest on education loans is fully deductible under Section 80E with no ceiling, and donations to approved institutions attract a 50 % or 100 % deduction under Section 80G. Home‑loan interest up to ₹2 million is deductible under Section 24(b).
The return must be verified within 30 days of filing; otherwise the ITR is deemed invalid and refunds may be delayed. Failure to verify or to file by the July 31 deadline attracts penalties: late filing under Section 234F can cost up to ₹5,000 for incomes above ₹5 million and up to ₹1,000 for lower incomes. Revised returns lodged late attract fines of ₹1,000‑₹5,000, while understating income can lead to a penalty of 50 % to 200 % of the tax due. Cash transactions of ₹2 million or more in a single day are also penalised under Sections 269ST and 271DA.
Entities: Aadhaar · Centralized Processing Centre, Bengaluru · Digital Signature Certificate · Income Tax Department of India · Indian taxpayers · National Pension System · Public Provident Fund · Section 80C · Section 80D
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] ITR must be verified within 30 days of filing; otherwise it is treated as invalid and refunds may be delayed. (a4657261-1074-42c1-aabb-7a2225ba57f5)
- [● 2 SOURCES] Taxpayers can claim up to ₹1.5 million deduction under Section 80C for eligible investments. (a185f48b-42ef-4d8f-80d5-c1113a2aa28c, ff96a86b-8711-4207-b2a3-b447467d5ec6)
- [○ 1 SOURCE] Home‑loan interest up to ₹2 million is deductible under Section 24(b). (a185f48b-42ef-4d8f-80d5-c1113a2aa28c)
- [● 2 SOURCES] Interest on education loans is fully deductible under Section 80E with no upper limit. (a185f48b-42ef-4d8f-80d5-c1113a2aa28c, ff96a86b-8711-4207-b2a3-b447467d5ec6)
- [○ 1 SOURCE] Late filing after July 31 incurs a penalty under Section 234F of up to ₹5,000 for incomes over ₹5 million and up to ₹1,000 for lower incomes. (da674357-1386-49c6-a15e-85549565bc5f)
- [● 2 SOURCES] Donations to approved institutions qualify for a 50 % or 100 % deduction under Section 80G. (a185f48b-42ef-4d8f-80d5-c1113a2aa28c, ff96a86b-8711-4207-b2a3-b447467d5ec6)
- [● 2 SOURCES] An additional ₹50,000 deduction under Section 80CCD(1B) is available for National Pension System contributions, raising the total to ₹2 million when combined with Section 80C. (a185f48b-42ef-4d8f-80d5-c1113a2aa28c, ff96a86b-8711-4207-b2a3-b447467d5ec6)
- [● 2 SOURCES] Health‑insurance premiums qualify for a deduction under Section 80D ranging from ₹25,000 to ₹1 million depending on family composition and senior‑citizen status. (a185f48b-42ef-4d8f-80d5-c1113a2aa28c, ff96a86b-8711-4207-b2a3-b447467d5ec6)