• 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.


    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.