Tax Deductions You Didn’t Know You Could Write-Off
Two Crore Indians file returns but pay zero income tax!
A junkyard owner tried to write off the cost of cat food. He claimed the feral cats it attracted helped him keep snakes and rats off the property. Did you know the government once let a bodybuilder successfully write off a huge sum in tanning oil?
There’s a whole world of obscure, industry-specific tax deductions you could be missing out on as a small business owner without even knowing it. So how do you find them?
Make sure you’ve deducted the less obscure ones first.
Did you know you can claim a tax deduction on stamp duty? Or if you use a specific part of your home exclusively for business, you may be able to claim the home office deduction?
Before you start claiming cat food on your business tax return, make sure you’ve deducted the other lesser-known expenses first. Take a look at a list of some of the lesser-known investments and expenditures that are eligible for tax breaks. These commonly come u/s 80C, 80D, etc.
Pre-Nursery fees deduction… School tuition fees are not the only deduction you can claim. The deduction can be claimed on children’s playschool, pre-nursery and nursery fees, too.
Your PPF or Public Provident Fund can be reinvested… A large number of salaried individuals are unaware of the fact that the PPF scheme allows partial withdrawals from the seventh financial year.
Tax break on Stamp Duty… Stamp duty and registration fees paid while buying a house can also be claimed.
Interest on loans taken from parents… The deduction allowed is not restricted to interest paid on loans from banks and housing finance companies.
Rent to parents cuts tax… This is another lesser-known tax break. Rent paid for staying in a property owned by your parents is tax-deductible. You can avail exemption under House Rent Allowance or HRA.
Group cover can also be claimed… Any amount paid for group health insurance premium is eligible for a tax break.
Funding your parents’ medical expenses… It is common for elderly parents, above the age of 60, to incur medical expenses. This expenditure is usually on a recurring basis. You can claim deduction on these expenses.
All the above deductions can be claimed under the Old Tax Regime. And Once you know these lesser-known tax deductions, you can go digging for obscure ones.
These deductions will help you save up your hard-earned income. We will be talking in-depth about business deductions that can be availed in the blogs to come.
