For the Assessment Year 2023-24, individuals earning a salary are eligible for various tax deductions under the Income Tax Act, 1961. Below is a guide on common deductions and the documentation required:

Common Tax Deductions for Salary Income:

1. Standard Deduction (Section 16):

   • Amount: Rs. 50,000 for the AY 2023-24.
   • Documentation: No specific documentation is required. The standard deduction is automatically applied to salary income.

2. Professional Tax:

   • Amount: Actual amount paid during the year.
   • Documentation: Collect professional tax receipts from your employer or pay the tax directly and keep the receipts.

3. House Rent Allowance (HRA) (Section 10(13A)):

   • Amount: Least of the following:
     • Actual HRA received.
     • Rent paid minus 10% of salary.
     • 50% of salary if living in a metro city or 40% for non-metro cities.
   • Documentation:
     • Rent receipts with landlord details.
     • Rental agreement if rent exceeds Rs. 1,00,000 per annum.

4. Leave Travel Allowance (LTA) (Section 10(5)):

   • Amount: Actual expenses on travel incurred during leave.
   • Documentation:
     • Boarding pass, tickets, and hotel bills.

5. Deduction under Chapter VI-A:

   • Amount: Varies based on the section (e.g., 80C, 80D, 80G, etc.).
   • Documentation: Bills, receipts, and certificates as applicable for deductions like:
     • Provident Fund (PF) contributions.
     • Life Insurance Premium.
     • Health Insurance Premium.
     • Donations, etc.

Additional Points to Note:

• Form 16: Employers provide Form 16, which includes details of salary income, allowances, and deductions. This is a crucial document for filing income tax returns.

• Form 12BB: If you haven’t submitted investment proofs to your employer, you may need to provide a declaration in Form 12BB for claiming deductions under Chapter VI-A.

• Home Loan Interest Certificate: If you have a home loan, obtain the interest certificate from the lender, which is required for claiming deductions under Section 24(b) for home loan interest.

• Medical Bills and Health Check-up: Keep medical bills and receipts for expenses incurred for medical treatment or preventive health check-ups to claim deductions under Section 80D.

• Rent Agreement: If you are claiming HRA, having a rent agreement with your landlord is essential.

• Investment Proofs: Maintain documentary evidence for all eligible deductions under various sections, like investment proofs for ELSS, PPF, NSC, etc.

Conclusion:

Understanding the deductions available and maintaining the necessary documentation is crucial for optimizing tax liabilities. It is advisable to consult with a tax professional for personalized advice based on individual financial situations. Always ensure compliance with the latest tax regulations and amendments.