• May
  • 26
  • 2014

Income Tax Deductions Chart for A.Y. 2014-15/ 2015-16 for Salaried

CA Sandeep Kanoi

The Income Tax Act provides that on determination of the gross total income of an assessee after considering income from all the heads, certain deductions therefrom may be allowed. These deductions detailed in chapter VIA of the Income Tax Act must be distinguished from the exemptions provides in Section 10 of the Act. While the former are to be reduced from the gross total income, the latter do not form part of the income at all.

The chart given below describes the deductions allowable under chapter VIA of the I.T. Act from the gross total income of the assessees having income from salaries.

SECTION NATURE OF DEDUCTION REMARKS
80CCC Payment of premium for annuity plan of LIC or any other       insurer Deduction is available upto a  maximum of Rs. 10,000/- The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund. The Finance Act 2006 has enhanced the ceiling of deduction under Section 80CCC from Rs.10,000 to Rs. 1,00,000 with effect from 1.4.2007.Read more – Income Tax Deduction Under section 80CCC
80CCD Deposit made by an employee in his pension account to the extent of 10% of his salary. Where the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year. The Finance Act, 2009 has extended benefit to any individual assesse, not being a Central Government employee.

Read More – Income Tax Deduction Under section 80CCD

80CCF Subscription to long term infrastructure bonds Subscription made by individual or HUF to the extent of Rs. 20,000 to notified long term infrastructure bonds is exempt from A.Y. 2011-12 onwards. This deduction is discontinued w.e.f. A.Y. 2013-14.
80D Payment of medical insurance      premium. Deduction is available upto Rs.15,000/ for self/ family and also upto Rs. 15,000/- for insurance in respect   of  parent/ parents of the assessee.In case of senior citizens, a deduction              upto Rs.20,000/- shall be available under this Section. Insurance premiume of senior citizen parent/ parents of the assessee also eligible for enhanced deduction of Rs. 20000/- The premium is to be paid by any mode of payment other than cash and the insurance scheme should    be framed by the General Insurance Corporation of India & approved by the Central Govt. or Scheme framed by any other insurer and approved by the Insurance Regulatory & Development Authority. The premium should be paid in respect of health insurance of the assessee or his family members. The Finance Act 2008 has also provided deduction upto Rs. 15,000!- in respect of health insurance premium paid by the assessee towards his parent/parents. w.e.f. 01.04.2011, contributions made to the Central Government Health Scheme is also covered under this section.Read More – Deduction U/s 80D for Mediclaim Premium to Individual, HUF, Senior Citizens
80DD Deduction of Rs.40,000/ — In respect of (a) expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative. (b) Payment or deposit to specified scheme for maintenance of dependent handicapped relative. W.e.f. 01 .04.2004 the deduction under this section   has  been enhanced to Rs.50,000/- Further,  if the dependent is a person with severe disability a deduction of Rs.1,00,000!- shall be available under this section The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.Note: A person with severe disability means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the “Persons with Disabilities (Equal opportunities, Protection of Rights and Full Participation) Act.,”Read More – Deduction u/s. 80DD for expenses on medical treatment of disabled dependent
80DDB Deduction of Rs.40,000/- in respect of medical expenditure incurred.W.e.f.     01.04.2004, deduction under this section   shall        be available to the extent of Rs.40,000/- or  the amount actually paid, whichever is less.In case of senior citizens, a deduction upto Rs.60,000/- shall be available under this Section. Expenditure must be actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10I is to be furnished by the assessee from a specialist working in a Government hospital.Read More – Deduction under section 80DDB with FAQ
80E Deduction in respect of payment in the previous year of interest on loan taken from a financial institution or approved charitable institution for higher studies. This provision has been introduced to provide relief to students taking loans for higher studies. The payment of the interest thereon will be allowed as deduction over a period of upto 8 years.         Further,                by Finance Act, 2007 deduction under this section shall be available not only in respect of loan for pursuing higher education by self but also    by                spouse    or
children of the assessee.W.e.f. 01.04.2010 higher education means any course of study pursued after passing the senior secondary examination or its equivalent from any recognized school, board or university.Read More – Section 80E – Deduction for Interest on education Loan
80EE Deduction in respect of interest on loan taken for residential house property Vide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04- 2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40 lakhs. However the deduction is available if the assessee does not own any residential house property on the date of sanction of the loan.Read More – Section 80EE Income Tax Benefit on Home Loan Interest 
80G Donation to certain funds,     charitable institutions etc. The various donations specified in Sec. 80G are          eligible    for
deduction upto either 100% or 50% with or without restriction as provided in Sec. 80GRead More – Deduction U/s. 80G of Income Tax Act, 1961 for donation
80GG Deduction available is the least of(i) Rent paid less 10% of total incomeii. Rs.2000 per month

iii. 25% of total income

(1) Assessee          or his spouse    or minor child       should    not own        residential accommodation at the place of employment.(2) He should not be in receipt of house rent allowance.(3) He should not have a self-occupied residential premises in any other place

Read More – Section 80GG Deductions – For rent paid

80TTA Deduction in respect of interest on deposits in savings account Section 80TTA is introduced wef A.Y. 2013-14 to provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower.Read More – S. 80TTA – Deduction in respect of interest on deposits in savings account
80U Deduction of Rs.50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs.75,000/- shall be available u/s 80U.W.e.f. 01.04.2010 this limit has been raised to Rs. 1 lakh. Certificate should be obtained on prescribed format from a notified ‘Medical authority’.Read More – Deduction U/s. 80U for disabled persons
87A Rebate Of Rs 2000 For Individuals Having Total Income Upto Rs 5 Lakh Finance Act 2013 has provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income  not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. WEF A.Y. 2014-15.Read More – Section 87A – Income Tax Rebate

 

80RRB Deduction in respect of any income by way of royalty in respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available as :-Rs. 3 lacs or the income received, whichever is less. The assessee who is a patentee must be an individual resident in India. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority alongwith the return of income.
80QQB Deduction in respect of royalty or copyright income received in consideration for authoring any book of literary, artistic or scientific nature other than text book shall be available to the extent of Rs. 3 lacs or income received, whichever is less. The assessee must be an individual resident in India who receives such income   in exercise of his profession. To avail of this deduction, the assessee must furnish a certificate in the prescribed form along with the return of income.
80C This section has been introduced by the Finance Act, 2005.Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section is limited to Rs. 1 lakh only.

 The following investments/payments are inter alia eligible for deduction u/s 80C:-

 

NATURE OF
INVESTMENT
REMARKS
Life Insurance Premium For individual, policy must be in the name of self or spouse or any child’s name. For HUF, it may be on life of any member of HUF.
Sum paid under contract for deferred annuity For individual, on life of self, spouse or any child of such individual.
Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self, spouse or child Payment limited to 20% of salary.
Contribution made under Employee’s Provident Fund Scheme
Contribution to PPF For individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
Contribution by employee to a Recognised Provident Fund.
Subscription to any notified securities/notified deposits scheme.
Subscription to any notified savings certificates. e.g. NSC VIII issue.
Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
Contribution to notified deposit scheme/Pension fund set up by the National Housing Bank.
Certain payment made by way of instalment or part payment of loan taken for purchase! construction of residential house property. Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
Subscription to units of a Mutual Fund notified u/s 1 0(23D)
Subscription to deposit scheme of a public sector company engaged in providing housing finance.
Subscription to equity shares! debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education. Available in respect of any two children.
Any term deposit for a fixed period of not less than five years with the scheduled bank. This has been included in Section 80C by the Finance Act 2006.
Subscription to notified bonds issued by NABARD This has been included in Section 80C by the Finance Act 2007 and has come into effect from 1.4.2008.
Payment made into an account under the Senior Citizens Savings Scheme Rules, 2004 This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.
Payment made as five year time deposit in an account under the Post Office Time Deposit Rules, 1981 This has been introduced by Finance Act, 2008 and shall come into effect from 1.4.2009.

It may be noted that the aggregate amount of deductions under sections 80C, 80CCC and 80CCD are subject to an overall ceiling of Rs.1 lakh.

(Republished with Amendments)


24 Responses to “Income Tax Deductions Chart for A.Y. 2014-15/ 2015-16 for Salaried”

  1. DHARMENDRA DAVE says:

    DO EXCELLENT JOB FOR COMMAN SALARIED EMPLOYEES, PLEASE DO CONTINUE YOUR EXCELLENT SERVICE.
    NOW LAT ME KNOW THAT INVESTMENT IN ICICI PENSION PLAN U/S 80CCC IS INCLUDED IN 80C OR ADDITIONAL BENEFIT + 80C
    PLEASE REPLAY
    THANKS MY BEST REGARDS.

  2. hemal says:

    sir, can u let me know what type of deductions are permissible for male individuals from salary & rented income (house property)

  3. Simran Chhabra says:

    Hi,

    If you can mail me the incomes tax calculator for current year(14-15) in which fuel and maintenance, driver salary, communication etc exemptions are available and everything get auto calculated ones numbers are inserted

  4. sanabh says:

    can you please let me know under which section i can claim tax deduction for the amount that i paid for PPF during the year.. i have paid almost 50000 rupees during the year in addition to other investments like LIC

  5. som says:

    Very useful information for salaried employees, most of them remain unaware of these facts.

  6. Raman Kr. says:

    Whether the benefit of Sec 80EE can be taken , even in case of original loan take over by another financial institution of the single flat bought in the given period?

  7. mahesh babu says:

    good information

  8. S.Banerjee says:

    Sandeep

    You need to file rectification petition u/s 154 to your AO

  9. phani says:

    It is very useful information and Thanks for posting the same

  10. UMESH K PAREKH says:

    i like this type of information

  11. Sandeep Banerjee says:

    I have wrongly filed my return for assessment year 11-12. My net Income is Rs 5,62,283.00 after deduction of HRA, PF, Conveyance Allowance, were I have mentioned Rs 6,40,351.00 (Inclusive of HRA, PF,Conveyance Allowance etc..)
    Because of my mistake I have received demand note of Rs. 11720.00
    Request you kindly suggest what to do?? how to resolve this Issue, Ihave contacted CPC they refer to local AO ,local AO is no doing anything,rectifecation is also not feasible.

  12. Nitin Palkar says:

    Very useful info for individuals.

  13. khairati Lal Nanda says:

    I have purchased free hold property from bank loan in 2010 with the permission of Department. I m salaried person- central govt. I have rented out this said property and rent showing with my salary as house rent income. kindly let me know on what rules I have to take the interest benefit from my deptt. in income tax. my department objected on this. kindly let me know clear-cut rules

  14. S.Banerjee says:

    PPF maximum deposit in a year INR 1,00,000

  15. A. Ranganathan says:

    The new format of Form 15H pose problems, with different Bank Branches interpreting the Form in different ways.Suppose I have an Account with a bank and my earning by way of interest on deposits are subject to TDS.
    Should I , while submitting the Form 15H claiming non deduction of TDS (a) because I am s super senior citizen and (b) I will have no tax liability being under under the slab, detail ALL my investments in Mutual Fund, Equities, deposits with other Financial Institutions and Banks, Bond and NCDs? Should I duplicate these details if I have to submit a FORM 15H to another Bank to claim exemption from TDS. What a waste of time and energy !

    The Advance Tax is no longer applicable to Senior Citizens. Why not exempt Senior Citizens from the TDS routine as well. It will make work
    for them to file the Annual Returns. easy

  16. CA. SHANKAR says:

    very good information thanks

  17. dilip jaitpal says:

    please let me know that maximum deduction available against payment of fees paid for children under section 80c

    Kindly reply

    Thanks and regards

    dilip Jaitpal

  18. RAJALAKSHMI says:

    I am a drawing officer in a higher secondary school run by the state government of tamilnadu.I would like to know whether the contribution of the state government towards the contributory pension scheme can be deducted under 80cc

  19. Mukesh Gupta says:

    Dear Sir,

    I am living in Borivali (Mumbai) on rental income and my office is also situated in Chembur (Mumbai) but i have a own house in Thane with Home Loan, Thane is a seperate district so can i claim HRA and Interest on Principal Loan Amount and Principal Amount. Please suggest.

  20. malaget n says:

    80C is limited to Rs.100000/- for the A y 2013-14

  21. M.s. Rajaram says:

    Each of the spouse is a separate entity for assessment of its income.As such the tax benefit is available to the assessee only.

  22. Juzer Rangwala says:

    Great compilation of various deductions avaialbe to an individual assessee from taxable income on which tax is required to be paid. In the current financial year 2012-13, Section 80 TTA has been introduced to allow as a deduction of maximum Rs.10000/- towards interest earned by an assessee in his savings bank account which is also required to be added first in the gross income as “Income from other sources” and thereafter reduced under Section 80 TTA

  23. Dr S.K.Aggarwal says:

    What is the maximum amount one can deposit in PPF in one financial year (during this current year)?

  24. shalini says:

    can 80 ccc tax benefits be availed even if the payment is made by the spouse

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