TogglIcon
ToolsLearnBytesTax Q&AGet Started

Tax Hacks: Lesser-Known Income Tax Deduction


A junkyard owner once 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 income tax deduction you could be missing out on as a small business owner without even knowing it. So how do you find these lesser-known deductions?

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.

Let’s dig out some of the lesser-known ones!

Income Tax Deduction: Saving the environment with benefits to Electric Vehicle buyers u/s 80EEB

🏎️ Interest on loan for the purchase of an Electric Vehicle is exempt. This deduction is available from A.Y. 2020-21 i.e. the loan should be sanctioned between 1.4.2019 to 31.3.2020. This deduction is included under Section 80EEB.

The maximum permissible deduction is INR 1,50,000

Look out for…

  • Only interest expense to be allowed as a deduction
  • The assessee should be an ‘individual’

Fulfilling the dream for first time home buyers u/s 80EE and 80EEA

🏡 Claim deduction U/S 80EE and 80EEA on interest paid on a home loan taken by a first-time homeowner.

  • 80EE

Interest on loan should be sanctioned between 1.4.2016 to 31.3.2017 for the purchase of the first house. It is applicable to ‘all’ taxpayers. Section 24 can be claimed to provide exemptions up to INR 2.5 lakh.

Deduction Amount – INR 50,000

Look out for:

  • Loan Amount should not exceed INR 35 Lakhs

Know more.

  • 80EEA

Interest on loan should be sanctioned between 1.4.2019 to 31.3.2020 for the purchase of the first house. Applicable to ‘individual’ taxpayers. Section 24 can be claimed for exemptions up to INR 3.5 lakh.

Deduction Amount – INR 1.5 Lakh

Look out for:

  • Stamp duty cost should not exceed INR 45 Lakhs
  • Shouldn’t have taken any deduction U/S 80EE

Know more.

Income Tax Deduction Benefits to contributing members of society u/s 80G

💰 Donations made to certain relief funds & charitable institutions U/S 80G are tax-deductible. Additional documents like Stamp Receipts and Form 58 are also required as proof of donations.

There are 3 types of deduction eligibility:

i. 100% or 50% without any qualifying limit

ii. 100% subject to the qualifying limit of 10% of adjusted gross total income

Look out for:

  • ’Cash’ payment of more than INR 10k in not eligible

Read on: https://learn.quicko.com/section-80g-deduction-for-donation-to-charitable-organisations

80C Deduction – Benefits for nurturing the children

📚 Playschool, nursery, and pre-nursery fees for children are eligible for deduction U/S 80C. The benefit is restricted to 2 children per individual. So a couple can claim a deduction for the fees of 4 kids.

Maximum permissible deduction: INR 1.5 Lakh

Look out for:

  • Late fees, donations, etc are not eligible.

Income Tax Deduction Rent to parents cuts tax u/s 10(13A)

👪 Rent paid to parents for residing in their property is tax-deductible U/S 10(13A). This can help save hard-earned money for the entire family. Also, parents are still eligible for the standard deduction.

Deduction Amount (the lowest out of the following)

  • Actual HRA received
  • rent paid over 10% of salary
  • 50% of basic salary (40% if you live in a nonmetro)

Look out for:

  • It is important to make the landlord-tenant equation official.

Read on.

Income Tax Deduction – Benefits for the better health of your parents u/s 80D

🩺 Recurring medical expenses of elderly parents can be claimed  U/S 80D. The medical expenditure incurred by parents only if they are above 60 years of age.

Maximum permissible deduction- INR 50k

Look out for- Not allowed if parents already covered by a health insurance policy.

Read on.

Income Tax Deduction – Benefits for higher education u/s 80E

🎓 Interest paid on repayment of education loan is eligible for deduction U/S 80E. The exemption is allowed only to ‘individual’ taxpayers. The loan must be for self, spouse, or children, and the repayment must be done by the taxpayer. Producing a certificate of repayment to your employer is mandatory.

Maximum deduction amount: INR 1.5 Lakh

Look out for: 

  • The deduction is available only for 8 consecutive years.

Income Tax Deduction – Exemption for the Innovators u/s 80-IAC

💡 Section 80-IAC provides a deduction for 100% of the income i.e. profits and gains of an eligible startup

The following conditions are mandatory to be eligible for the above deduction:

  • Should be a Pvt. Ltd. Company or an LLP incorporated after 1.4.2016
  • The turnover limit should be INR 25 cr.
  • Certificate from the Inter-Ministerial Board of Certification is compulsory

Deduction Amount- 100% of income for 3 out of 7 years from the year of incorporation

There’s a whole world of TAX DEDUCTIONS you could be missing out on. But these deductions will help you save up your hard-earned income. Make sure to claim them this Tax Season 2020!

Tweet Us--Like Us--Join Us

18 Likes

Share
facebook twitter

Got Questions? Ask Away!

  1. Hey @sushil_verma

    There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

  2. Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA), conveyance, transport allowance, medical reimbursement, etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

    For eg,

    • Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
    • Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
    • Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

    Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

  3. The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

    Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

    As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

  4. Hey @Sharath_thomas , we have updated the content according to the appropriate assessment year. Thanks for the feedback. :slight_smile:

Continue the conversation on TaxQ&A

95 more replies

Participants

Comments

astrorobotclicker says: (Awaiting Approval)

2025-03-27 11:41:38

Astro Robot Clicker is an engaging space adventure game that combines strategy and automation. Build and upgrade robots to explore planets and gather resources, offering a fun experience for both casual and dedicated players. Highly recommended!

Reply

astrorobotclicker says: (Awaiting Approval)

2025-03-27 11:41:38

Astro Robot Clicker is an engaging space adventure game that combines strategy and automation. Build and upgrade robots to explore planets and gather resources, offering a fun experience for both casual and dedicated players. Highly recommended!

Reply

sprunkilily says: (Awaiting Approval)

2025-03-26 09:53:26

The experience is singularly fascinating. A wonderful encounter for every individual! Sprunki new mod adds new characters like Lilac (Lily), and they are so cool,come to Sprunki Lily Bear Clicker Sprunki countryhopper spranki sprunkiphase1 trickshotsimulator

Reply

Kolten Curtis says: (Awaiting Approval)

2025-03-25 04:03:52

Explore niche tax deductions beyond standard ones. Consider deductions for home office expenses or educational credits. Tax planning, like the 2048 game, requires strategic merging of options for maximum benefit. Optimize your returns with these lesser-known tax hacks.

Reply

Louis Perry says: (Awaiting Approval)

2025-03-25 04:01:27

Unlock hidden tax savings! Explore lesser-known deductions beyond the basics. Strategic planning, like "block blast" in Tetris, maximizes your returns. From home office expenses to specific professional fees, these deductions can significantly reduce your tax burden. Consult a tax expert for personalized advice.

Reply

worldguesser says: (Awaiting Approval)

2025-03-21 08:32:33

World Guesser offers an amazing variety of countries and regions to explore. It is a fun way to cultivate a greater understanding of the cosmos.

Reply

repomod says: (Awaiting Approval)

2025-03-21 03:11:53

your ultimate destination for enhancing your gaming experience! At https://repomod.com/, we offer a variety of mods designed to take your gameplay to the next level. Whether you're looking to add new roles, increase the number of players, or boost your stamina, we've got you covered. Our popular mods include R.E.P.O. Roles, R.E.P.O. MorePlayers, R.E.P.O. MoreStamina, ShrinkerCart, Enemy Location, LegoGnomes, EvenMoreHead, and InfiniteEnergyCrystals. Dive in and explore the endless possibilities with REPO Mods!

Reply

repomod says: (Awaiting Approval)

2025-03-21 03:13:13

repo mod

Reply

repomod says: (Awaiting Approval)

2025-03-21 03:11:52

your ultimate destination for enhancing your gaming experience! At https://repomod.com/, we offer a variety of mods designed to take your gameplay to the next level. Whether you're looking to add new roles, increase the number of players, or boost your stamina, we've got you covered. Our popular mods include R.E.P.O. Roles, R.E.P.O. MorePlayers, R.E.P.O. MoreStamina, ShrinkerCart, Enemy Location, LegoGnomes, EvenMoreHead, and InfiniteEnergyCrystals. Dive in and explore the endless possibilities with REPO Mods!

Reply

Playpharos says: (Awaiting Approval)

2025-03-18 07:08:25

"This article is a goldmine—uncovering lesser-known tax deductions is like finding hidden treasure! I’ve always thought tax season was just about the obvious stuff, but it’s eye-opening to see how many small savings we might be missing out on. It really makes you appreciate the value of digging a little deeper into the rules. Speaking of smart finds, if you need a break after after crunching numbers, I recently stumbled upon playpharos—a fun way to unwind with some games while you’re waiting for those tax refunds to roll in!"

Reply

fisch macro says: (Awaiting Approval)

2025-03-18 06:29:43

fischmacro is the official hub for downloading advanced macros designed specifically for the popular Roblox game, Fisch. Whether you're looking to enhance your gameplay, automate tasks, or gain a competitive edge, FischMacroo.com offers reliable and optimized macros tailored to your needs. Visit now to elevate your Fisch experience and dominate the game like never before!

Reply

excel easy says: (Awaiting Approval)

2025-03-18 06:28:58

ExcelEasy is your AI-driven Excel assistant, designed to solve various Excel challenges and make spreadsheet work easy. It provides an AI Excel Builder, uses natural language processing to create powerful Excel functions and VBA macros, instantly converts pictures containing tables, data or text into editable Excel spreadsheets, and uses AI-driven analysis to convert Excel data into professional charts and insights. Complete Excel functions better with AI capabilities

Reply

Dragon Sweeper says: (Awaiting Approval)

2025-03-16 13:19:12

This article on lesser-known tax deductions is incredibly informative!like dragonsweeper

Reply

asherbonaventure says: (Awaiting Approval)

2025-03-17 07:48:52

Colorful blocks and simple yet addictive gameplay make Block Blast a must-play game. Whether you want to relax or challenge yourself, Block Blast is endless fun. Let's explore now!

Reply

Dragon Sweeper says: (Awaiting Approval)

2025-03-16 13:19:12

This article on lesser-known tax deductions is incredibly informative!like dragonsweeper

Reply

Sprunki Spunkr says: (Awaiting Approval)

2025-03-16 13:17:09

Sprunki Spunkr!! is an absolute gem for anyone who loves to break free from the ordinary and dive into a world of quirky creativity! This mod is like a playground for your imagination, where music rules are rewritten, and every character brings their own unique vibe to the mix. It’s not just a game—it’s a full-on adventure in sound and visuals. If you’re ready to create dynamic melodies and explore a truly unique experience, this is your ultimate gateway. Check it out now:Sprunki Spunkr!!

Reply

Stickman Games says: (Awaiting Approval)

2025-03-16 13:16:19

Stickman Games - Play Online for Free! Your Ultimate Hub for Free Stickman Games Online Stickman Games

Reply

Describe Image says: (Awaiting Approval)

2025-03-16 13:14:52

Describe Image leverages advanced AI models to analyze your uploaded images and provide detailed descriptions of their content for free. Describe Image

Reply

blockblastonlinefree says: (Awaiting Approval)

2025-03-15 11:24:55

In Block Blast, special blocks can be activated to clear more blocks at once.

Reply

kissing generator says: (Awaiting Approval)

2025-03-14 23:45:41

Don't overlook hobby expense optimization! Strategic use of [url=https://kissinggenerator.online]pattern-mapped receipt clustering[/url] can legally convert creative pursuits into deductible ventures by auto-categorizing supplies through hobby-to-business threshold algorithms.

Reply

Kissing Generator says: (Awaiting Approval)

2025-03-14 23:46:58

Don't overlook hobby expense optimization! Strategic use of pattern-mapped receipt clustering can legally convert creative pursuits into deductible ventures by auto-categorizing supplies through hobby-to-business threshold algorithms.

Reply

blockbreaker.net says: (Awaiting Approval)

2025-03-13 08:11:43

Play Block Breaker Game Online at BlockBreaker.net! Enjoy endless fun with this classic arcade game. Break blocks, level up, and challenge yourself to achieve the highest score. Start playing now at https://blockbreaker.net/.

Reply

Wyatt says: (Awaiting Approval)

2025-03-13 07:38:21

You tell it like it is, which I find honest and interesting. My blog taught me a lot about age of war game

Reply

michaelarrington says: (Awaiting Approval)

2025-02-28 07:04:03

I love how you highlighted quirky examples like the junkyard owner’s cat food and the bodybuilder’s tanning oil—it really PolyTrack shows how creative (and specific) tax write-offs can get.

Reply

Lucas says: (Awaiting Approval)

2025-02-21 01:36:53

Golf Orbit is a fun, challenging game where you guide a golf ball through creative obstacles in unique spaces. Test your timing and calculation skills with eye-catching graphics and accessible gameplay.

Reply

spacewaves says: (Awaiting Approval)

2025-02-19 12:50:13

Looking for a thrilling arcade experience that combines simplicity with challenging gameplay? space wavesis your perfect destination!

Reply

Alicent says: (Awaiting Approval)

2025-02-19 05:00:11

In cases where a taxpayer claims unconventional deductions such as Block Blast cat food for pest control, what are the specific legal criteria the IRS or tax authorities use to determine whether an expense qualifies as ordinary and necessary for business purposes, and how do courts typically interpret disputes over such deductions?

Reply

linda34 says: (Awaiting Approval)

2025-02-19 04:09:15

Use the map to locate and find a safe escape route in smashy road.

Reply

Core Ball says: (Awaiting Approval)

2025-02-18 05:28:22

Monkey type is a free online typing practice website that offers a variety of typing tests and games to help improve your typing speed and accuracy.

Reply

Saumya Giri says: (Awaiting Approval)

2025-02-17 07:47:41

Tonight with Punjabi Bagh Escorts is waiting for any excitement. Punjabi Bagh Escorts are virtuosos at confronting you with the absurd and absurdly pleasurable. Prepare to be buzzed by them and make u wish your dreams come true. Just give me a call and the best escort service of all will be at your service!

Reply

jorgiecastillo says: (Awaiting Approval)

2025-02-14 06:30:59

Good points! If you're interested in testing your color vision, try this quick Color Blind Test!

Reply

linnellaa says: (Awaiting Approval)

2025-02-14 01:47:04

In this article, we’ll explore what makes Drive Mad so engaging, provide gameplay tips, and highlight why it’s a must-try for fans of racing and puzzle games.

Reply

angelaeng says: (Awaiting Approval)

2025-02-08 07:14:16

In chill guy clicker, each click is an opportunity for you to relax and enjoy unexpected rewards, creating a world of relaxation and joy.

Reply

Gold Price in Oman says: (Awaiting Approval)

2025-02-04 17:48:58

Great post! Learned a lot from this informative article. Thanks for sharing! Up-to-date gold price in Oman for 18k, 21k, 22k, and 24k gold. Accurate rates in OMR, USD, and INR for 1 ounce, 1 gram, 10 grams, and 1 tola

Reply

hentylee says: (Awaiting Approval)

2025-02-04 08:34:59

Start an exciting journey through the dangerous temple run 2

Reply

Glenn Colon says: (Awaiting Approval)

2025-02-03 03:40:39

I am the creator of Space Waves game, a game where you have to control the arrow to avoid obstacles. The process of creating it makes me very proud. I would like to have your contribution about this game in the game's comment section.

Reply

18k Gold Price in Oman says: (Awaiting Approval)

2025-01-29 18:03:53

Very helpful content. Appreciate the effort in providing such valuable insights! 18k Gold Price in Oman We are providing today and history table of 18 Carat gold price range from 1g, 10g, 1tola and 1 Ounce

Reply

linda345 says: (Awaiting Approval)

2025-01-21 09:46:10

escape road 2 has sharp graphics and vivid sounds, creating a sense of excitement for players in every moment and every route passed.

Reply

Sports Shirts says: (Awaiting Approval)

2025-01-09 21:47:43

I'm thrilled to have found this website! It's packed with valuable information, well-organized, and the posts are fantastic. Our PSL shirts are perfect for fans, offering premium quality and comfort. Available in a variety of designs, these shirts reflect the true spirit of the Pakistan Super League. Whether you're in Pakistan or abroad, our brand brings you the best PSL merchandise to wear with pride

Reply

clara16720 says: (Awaiting Approval)

2025-01-07 11:20:07

capybara clicker is a basic but amusing game about clicking charming capybaras. Player engagement is enhanced by this clicking and resource management game.

Reply

DigiStack Marketing says: (Awaiting Approval)

2025-01-06 14:32:36

Great insights! Grow Google Business Profile audience is crucial for local visibility. Engaging with reviews, optimizing your profile with accurate info, and using posts consistently can drive traffic. Additionally, leveraging relevant keywords and uploading high-quality photos can significantly boost your presence and attract more potential customers. Thanks for sharing!

Reply

Krista03 says: (Awaiting Approval)

2024-12-31 09:05:06

It's fascinating how some businesses find creative ways to justify their deductions! The examples of the junkyard block blast owner and the bodybuilder highlight the importance of understanding tax regulations. I wonder what other unconventional deductions might be out there!

Reply

Incredibox Mustard says: (Awaiting Approval)

2024-12-26 01:47:54

Incredibox Mustard has a wonderful community spirit! I love how players support and encourage one another. Sharing tips and tricks helps everyone grow as musicians. It’s refreshing to be part of a community that values collaboration and creativity over competition.

Reply

helgaella99 says: (Awaiting Approval)

2024-12-19 09:07:04

Maksuvabastus hariduse eest on suurepärane võimalus! Sektsioon Among Us 80E lubab kuni INR 1.5 lakh'i mahaarvamist, toetades seeläbi individuaalsete laenuvõtjate haridusteed.

Reply

moto x3m says: (Awaiting Approval)

2024-12-11 09:53:26

If you are looking for a highly entertaining game, this is definitely what you need to find, play now and enjoy with your friends! moto x3m moto x3m

Reply

absurdjanus says: (Awaiting Approval)

2024-12-18 08:55:09

The vibrant visuals of Geometry Dash make the gameplay visually appealing.

Reply

outuvore says: (Awaiting Approval)

2024-12-06 04:13:55

The fnf game is an exceptional blend of captivating gameplay and lively audio. Players are required to be fast and responsive in order to master the levels, which feature rhythm gameplay that is both challenging and easily comprehensible. I experience a sense of anticipation when confronting unfamiliar opponents, which in turn enhances my reflexes and abilities. The act of playing fnf not only fosters creativity but also provides a sense of pleasure when accompanied by captivating melodies.

Reply

2048 cupcakes says: (Awaiting Approval)

2024-11-18 03:11:36

Wow those are great ideas how did you get them 2048 cupcakes unbelievable

Reply

Amy Benjamin says: (Awaiting Approval)

2024-11-15 10:58:15

I’m amazed by your writing style! The blend of interesting getaway shootout facts with innovative perspectives is exactly what I wanted, and I appreciate your work deeply.

Reply

Audrey Dawson says: (Awaiting Approval)

2024-11-12 17:14:54

You have a special way of connecting with readers through your writing. Each post feels genuine and down-to-earth, making it easy to understand and relate to. flappy dunk

Reply

kenaanna says: (Awaiting Approval)

2024-10-18 01:45:26

The tips on lesser-known tax deductions can save many business owners money. I especially liked the section on deductions for first-time homebuyers and charitable contributions. It's like discovering the rice purity test meaning for finances—helpful insights that reveal more than you might expect! Thanks for sharing!

Reply

Norman Meadows says: (Awaiting Approval)

2024-10-08 07:53:12

Your writing style is both fascinating and conversational. It seems like we're having a coreball conversation rather than reading a blog article.

Reply

Paranjey says:

2020-03-17 08:35:15

Nicely written !!

Reply

Post a comment

Scroll to Top Quicko