Deductions from Gross Total Income
This Article covers the common deductions which can be claimed while filing Income Tax Return.
Most Common Deductions are classified in the following Categories for easy understanding-
1. Income Based Deductions
2. Standard Amount of Deductions
3. Investment Based Deductions
4. Expenses Based Deductions
Before going to any Specific Deductions, Lets see the Basic Rules for claiming Deductions
Section 80A– Basic Rules of Deductions
1. Deductions has to be claimed from Gross Total Income after giving effect to Set off & Clubbing Provisions
2. Deductions cannot exceed Gross Total Income
3. Any Unabsorbed Deductions cannot carry forward to next AY
4. Deductions are not available from the Following Income
Page Contents
Who can Claim | Individual (Other than Senior Citizen) or HUF |
On what Income | Interest received on Savings Bank Account |
How much to Claim | Actual Interest Received or 10,000 which ever is lower |
What Conditions to Fulfilled | Savings Bank Account should be in Bank, Co-Op Bank, Post office |
Who can Claim | Individual (Senior Citizen) |
On what Income | Interest on Savings Bank Account or Fixed Deposit Income |
How much to Claim | Actual Interest Received or 50,000 whichever is Lower |
What Conditions to Fulfilled | Savings Bank Account or F.D. should be in Bank, Co-Op Bank, Post office |
Who can Claim | Individual (Resident) |
How much to Claim | Standard Deduction- Severe Disability- 1,25,000 Non-Severe- 75,000 |
What Conditions to Fulfilled | Certificate of Disability is Required |
Who can Claim | Individual or HUF (Resident) |
How much to Claim | Standard Deduction- Severe Disability- 1,25,000 Non-Severe- 75,000 Note- Amount must be spent for Medical Treatment of Dependent or can be deposited in Scheme. However standard Deduction is allowed irrespective of Amount Expended. |
What Conditions to Fulfilled | 1. In case of Individual Assessee-Dependent can be Parents, Brother, Sister, Spouse, Childrens In case of HUF- Any Member of HUF 2. Dependent should not claim the deduction in 80C in their ROI |
Who can Claim | Individual or HUF (Resident) |
On what Investment | Refer Illustrative List given Below |
How much to Claim | Rs 1,50,000 or Actual whichever is lower (Limit is Including Section 80CCD & 80CCC) |
What Conditions to Fulfilled | 1. Payment to be made to Approved Schemes 2. Exemption is available on payment basis only |
Who can Claim | Individual (Resident or Non Resident) |
On what Investment | Investment in Annuity Plan for receiving Pension in Future |
How much to Claim | Actual or 1,50,000 Note- 1,50,000 limit is inclusive of limit of Section 80C & 80CCD |
What Conditions to Fulfilled | 1. Investment has to be made only from Taxable Income |
Who can Claim | Individual- Employed or Self Employed |
On what Investment | Investment in Pension Scheme |
How much to Claim | Refer Below (A) Point |
What After Closure of Scheme | 1. On Complete Closure- 60% of Amount is Exempt u/s 10(12A) 2. On Partial Closure- 25% of Amount is Exempt u/s 10(12A) |
Note- Here Salary means Basic Salary plus Dearness Allowance
This Section limit the overall Deduction of Section 80C, 80CCD & 80CCC to Rs. 1,50,000
Who can Claim | Section 80GGB- Indian Co. 80GGC- Any Assessee |
On what | Contribution to Political Party/ Electoral Trust |
How much to Claim | 100% |
Conditions | Not to be made in cash |
Who can Claim | Individual or HUF (Resident) |
On what Expenses | Medical Treatment for Specific Diseases for Self or Dependent |
How much to Claim | If Dependent is Senior Citizen- Actual or 100000 whichever is lower Other Cases- Actual or 40000 whichever is higher |
Conditions | In case of Individual- Dependent can be Individual himself, Parents, Brother, Sister, Spouse, Children’s In case of HUF- Any Member |
Specified Diseases covered include ataxia, dementia, aphasia, dystonia musculorum deformans, Parkinson’s, motor neuron disease, renal failure, cancers, hematological disorders and AIDS.
Who can Claim | Individual or HUF (Resident) |
On what Expenses | Refer Below (A) Point |
How much to Claim | Refer Below (B) Point |
Conditions | 1. Limit includes Amount paid for Preventive Health Checkup 2. If the Premium is paid for more than 1 year then, it should be apportioned between respect AY 3. Payment shall be made out of Income chargeable for Tax |
(a) Medical Insurance Premium & Approved Health Scheme
Paid for Assessee himself, Spouse and Dependent Children- | 25,000 or Actual whichever is lower |
Paid for Parent (Non Senior Citizens)- | 25,000 or Actual whichever is lower |
Paid for Any Person (Senior Citizen) | 50,000 or Actual whichever is lower |
(b) Preventive Health Checkup
Maximum 5,000 for whole Family
Note- Allowed as deduction even though payment is made in cash
(c) Medical Expenses for Super Senior Citizen
50000 or Actual Expenses- whichever is lower.
Who can Claim | Individual |
On what Expenses | Interest on Loan taken for Purchase of Electric Vehicle |
How much to Claim | Actual Interest Paid or 1,50,000 whichever is lower |
Conditions | 1. Loan should be taken between 01/04/2019 to 31/03/2020 2. Loan should be taken from Bank, FI, NBFC 3. Assessee should not own any electric vehicle on date of Sanction |
Who can Claim | Individual |
On what Expenses | Interest on Educational Loan taken for himself, Relative or as Guardian |
How much to Claim | 100% up to 8 Assessment Years |
Who are Relatives | Spouse and Children’s |
Hi Sir/Mam, I have gone through your post and I would like to inform you that we are a Certifying Authority under CCA. Capricorn CA is registered under CCA and it sells the Digital signature certificate’s PAN India.
Under SCSS scheme if invested 15 lakhs for 5 years, so how much we can claim under tax exemption every year
Under SCSS scheme if invested 15 lakhs for 5 years, so how much we can claim under tax exemption every year
ow much to Claim under 80CCD
Own Contribution 80CCD(1)
Employee- 10% of Salary
Self Employed- 20% of Gross Total Income
Additional Deduction on Own Contribution 80CCD(1B)
Upto 50,000 (Over and above 80CCD(1)
Employer’s Contribution 80CCD(2)
Central Government Employee- 14% of Salary
Other Employee- 10% of Salary
Sir, can an employee of state govt. avail the three contributions benefit i.e. including employer’s contribution in his return of income? We here avail the first two contributions i.e own contribution plus Rs. 50000 contribution only.