How to Make Declarations When Filing Income Tax: A Step-by-Step Guide

When filing your taxes as a salaried employee, there are several key components to declare. Let’s walk you through them.

 

First, we’ll talk about the components of your salary that you need to disclose. These include your basic pay, allowances, bonuses, and any other perks. Next, you’ll learn all about declaring your investments. These cover your investments in ULIPs, PPF, NSC, etc., that you can claim deductions under Section 80C. Don’t forget, NPS contributions are also eligible for tax benefits under Section 80CCD.

After that, we come to other deductions like healthcare expenses. For example, premiums paid for health insurance can be deducted under Section 80D. Next up, the video will take you through deductions that you can claim for your housing costs. There are exemptions on House Rent Allowance under Section 10(13A) and home loan repayments under Sections 80C, 80EE, and 24(b).

Ready to learn more? Then let’s venture into perks like Leave Travel Allowance (LTA). If your employer offers LTA, you can claim tax benefits on travel expenses for you and your family. By the way, donations to registered charities are also eligible for deductions under Section 80G.

Lastly, we’ll also discuss important documents to keep handy for a smooth tax filing experience.

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Key Takeaways

Declare your total salary, including basic salary, allowances, bonuses, and prerequisites, based on your salary slip

Utilize Section 80C for deductions on investments like ULIPs, PPF, EPF, NSC, and premiums paid for life insurance

Save for retirement with National Pension Scheme contributions and claim deductions under Section 80CCD

Gain tax benefits on health insurance premiums by declaring medical expenses under Section 80D

Leverage tax advantages related to housing, such as HRA for rented accommodation and deductions on housing loan interest and principal [Sections 10(13A), 80EE, 80C, and 24(b)]

Claim deductions for Leave Travel Allowance (LTA) and charitable donations under Sections 10(5) and 80G respectively

Stay organized and use online tools for efficient tax filing

Frequently Asked Questions
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You should declare your total salary, which includes your basic salary, any allowances, bonuses, and perks. All these details are typically outlined in your salary slip. It’s important to be thorough to ensure you’re accurately reporting your income and complying with tax regulations.
Yes, you can claim deductions under Section 80C for your life insurance premiums and various investments. This includes contributions to ULIPs, PPF, EPF, and NSC. Taking advantage of these deductions can significantly reduce your taxable income, so it’s wise to keep track of all eligible investments.
By contributing to the NPS, you can claim additional deductions under Section 80CCD. This applies to contributions made toward your retirement savings. It could not only help secure your future but also reduce your current taxable income, making it a win-win for your finances.
Yes. Under Section 80D, you can claim deductions on health insurance premiums for yourself and your family. This recognizes the importance of healthcare expenses and helps ease the financial burden.
Yes, you can get tax benefits. You can claim House Rent Allowance (HRA) if you’re renting a place. If you own a home and have taken out a loan, you can also claim deductions on the interest and principal payments under Sections 80EE, 80C, and Section 24(b). This can provide significant savings on your taxes while managing housing costs.
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