Income Tax Filing FY 2024-25: Key Deduction Limits and Documents Required Under Old Regime

With the deadline for filing Income Tax Returns (ITR) for Financial Year 2024-25 approaching, taxpayers opting for the old tax regime must ensure they have the correct information and documents to claim deductions.

Here is a comprehensive list of deductions and supporting documents required for filing ITR under the old regime.

Major Deduction Categories and Limits

1. Section 80C
   • Eligible Investments: Life Insurance Premium, PPF, NSC, Housing Loan Principal, Tuition Fees, etc.
   • Maximum Limit: ₹1,50,000
   • Documents Needed: Policy/Investment Certificate, Employer’s PF details.
2. Section 80D (Medical Insurance Premium)
   • Limit: ₹25,000 (self & family, <60 years), ₹50,000 (senior citizens).
   • Documents Needed: Policy number, premium receipt.
3. Section 80E (Education Loan Interest)
   • Limit: As per actual interest paid.
   • Documents Needed: Bank account number, IFSC, and interest certificate.
4. Section 80G (Donations)
   • Limit: 50% or 100% of donation with/without limit, depending on the notified institution.
   • Documents Needed: Donation receipt with trust PAN, registration number.
5. Section 80CCD(1B) (NPS Contribution)
   • Limit: ₹50,000
   • Documents Needed: PRAN number, contribution proof.
6. Section 80TTA/80TTB (Savings Interest/Fixed Deposit Interest for Senior Citizens)
   • Limit: ₹10,000 (80TTA), ₹50,000 (80TTB).
   • Documents Needed: Bank account details, IFSC.

Loan-Related Deductions (Housing & Education)

1. Section 24(b) (Home Loan Interest – Self-Occupied Property)
   • Limit: Up to ₹2,00,000
   • Documents Needed: Lender’s name, PAN, loan account number, interest certificate.
2. Section 80C (Housing Loan Principal Repayment)
   • Limit: ₹1,50,000
   • Documents Needed: Loan account details, possession certificate.
3. Section 80EE & 80EEA (First-Time Home Buyers)
   • Limits: ₹50,000 (80EE), ₹1,50,000 (80EEA, subject to conditions).
   • Documents Needed: Loan sanction letter, PAN of lender, property value certificate.
4. Section 10(13A) (HRA Exemption – Rent Paid)
   • Limit: Based on least of 3 conditions (actual rent paid, HRA received, or 50%/40% of salary depending on metro/non-metro city).
   • Documents Needed: Landlord’s name, PAN (if rent > ₹1 lakh/year), rent receipts, rent agreement.

Why It Matters

With the government offering taxpayers a choice between the new regime (with lower tax rates but fewer deductions) and the old regime (with higher rates but multiple exemptions), many professionals and salaried individuals continue to prefer the old regime to maximize savings through deductions.

Tax experts advise taxpayers to collect all necessary documents well in advance to avoid last-minute errors and ensure smooth filing of returns.