What is deductible as an itemized deduction?
Andrew Ramirez
Published Feb 26, 2026
An itemized deduction is an expense that can be subtracted from adjusted gross income (AGI) to reduce your taxable income and therefore reduce the amount of taxes you owe. Allowable itemized deductions, sometimes subject to limits, include mortgage interest, charitable gifts, and unreimbursed medical expenses.
How much in rebate is deductible?
Rebate limit under section 87A for all the Financial years
| Financial Year | Limit on Total Taxable Income | Amount of rebate allowed u/s 87A |
|---|---|---|
| 2019-20 | Rs. 5,00,000 | Rs. 12,500 |
| 2018-19 | Rs. 3,50,000 | Rs. 2,500 |
| 2017-18 | Rs. 3,50,000 | Rs. 2,500 |
| 2016-17 | Rs. 5,00,000 | Rs. 5,000 |
Are there any business expenses that are not deductible?
Expenses are not prohibited from deduction under the Income Tax Act. Non-deductible business expenses are activities you or your employees pay for that do not fulfil the conditions above.
Are there any donations that are not tax deductible?
Donations under any of the approved donation programmes where the IPC or approved beneficiary acknowledges the donation by including the donor’s name or logo in the IPC’s collaterals (e.g. banners, publications, advertisements). These donations are not tax deductible:
Do you get tax deductions for staff welfare?
**Expenses incurred by the company on staff welfare or benefits that are taxable in the hands of employees do not automatically qualify for tax deduction and vice versa. Such expenses must meet the tax deductibility conditions to qualify for tax deduction.
Are there any tax deductions for donation of computers?
As announced in Budget 2017, tax deduction scheme for donation of computers will be withdrawn with effect from 21 Feb 2017. A company that donates computers to prescribed educational, research or other institution in Singapore and IPC on or after 21 Feb 2017 would not be eligible for any tax deduction.
