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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. 1,00,000/- | 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 2015 has enhanced the ceiling of deduction under Section 80CCC from Rs.100,000 to Rs. 1,50,000 with effect from A.Y. 2016-17Read 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. |
| 80CCG | Investment under Rajiv Gandhi Equity Savings Scheme, 2013 | The deduction was 50 % of amount invested in such equity shares or ₹ 25,000, whichever is lower. The maximum Investment permissible for claiming deduction under RGESS is Rs. 50,000. The benefit is in addition to deduction available u/s Sec 80C.Read More- Deduction under section 80CCG |
| 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 CitizensBudget 2015 Proposed increase in Deduction Limit U/s. 80D which can be read here-Section 80D- Hike in Deduction Limit for Mediclaim |
| 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 sectionBudget 2015 has Further Proposed to hike the limit from A.Y. 2016-17 to Rs. 75000 from existing Rs. 50,000/- and for person with severe disability to Rs. 1.25 lakh from existing Rs. 1 Lakh. Read more-Budget 2015- Section 80DD deduction Limit Raised | 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.Budget 2015 has proposed deduction of Rs. 80000/- for seniot citizen aged 80 year or More from A.Y. 2016-17-Read More-Section 80DDB- Limit raised & waived condition of certificate | 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.Budget 2015 has Proposed for the purpose of claiming deduction under the section assessee will be required to obtain a prescription from a specialist doctor instead of Certificate.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 monthiii. 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 placeRead 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.Budget 2015 proposed to amend section 80U to raise limit of deduction in respect of a person with disability from Rs. 50,000/- to Rs. 75,000 and for person with severe disability from one lakh rupees to one hundred and twenty five thousand rupees.Read more-Budget 2015- Section 80U deduction Limit Raised | 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. 1.50 lakh only. Read More-Deduction under section 80C and Tax Planning |
The following investments/payments are inter alia eligible for deduction u/s 80C:-
| NATURE OF INVESTMENT |
REMARKS |
| Life Insurance PremiumRead more-Life Insurance Premium- Eligible Amount Under Section 80C |
– in case of individual, on life of assessee, assessee’s spouse and any child of assessee – in case of HUF, on life of any member of the HUF |
| Sum paid under contract for deferred annuity | in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity) |
| 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 or an approved superannuation 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. | — |
| Any subscription to Equity shares/ Debentures forming part of any eligible issue of capital by a Public company/ Public Financial Institution, wherein. | i) Eligible issue of capital means capital issued by a public co./ Public financial institution for utilizing the proceeds wholly & exclusively towards purposes of any business referred in Sec. 80IA(4). |
| 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. |
| Contribution to Sukanya Samriddhi Account Opened in the Name of Daughters – | This has been introduced vide Finance Act 2014 wef A.Y. 2015-16 |
It may be noted that the aggregate amount of deductions under sections 80C, 80CCC and 80CCD are subject to an overall ceiling of Rs. 1.50 lakh.
(Republished with Amendments)
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* Example :
Want file ITR.
Say want file for Rs. 5 Lacs.
Say Rs. 5Lacs is the income limit for which tax is zero and ITR can be filed.
For which of the below mentioned years can file ITR with no charges.
Or for how much amount can we file ITR with nil tax and for which of the years mentioned below before 31st March 2015.
Occupation is to be mentioned as what like say Self employed, Agency, Business etc.,
If Nil Tax income limit is say Rs.5 Lacs
But would want to file ITR for about 5 Lacs or for the amount of Zero tax limit for the following years before 31st March, 2015. With no charges.
Financial Year Assessment Year
10-11 11-12
11-12 12-13
12-13 13-14
13-14 14-15
14-15 15-16
iam a pensioner fro central govtand sr citizen. kindly reply upto what amount we are exempted from tax from the pension amount.
My mother is a family pensioner of State Government. Whether she is eligible to claim HRA exemption from IT AY 2015-16, at present she is residing in rented house. If she shifted to own house, she is eligible to claim HRA exemption. Pl. clarify.
This year I am going to get Form-16 from one company and Form-16A from present company. I am working as 2nd Officer onboard ships. My queries are
1. I have savings upto 50000/- and paid for children tuition fee 10000/- also i did some courses and booked for courses belongs to my job, it is approximately 50000/- So can I show these under 80c? Also what else can I show under what section. My income of this financial year already crossed 7 lacs. Pls advise me.
2. My present company not paying income tax as my previous company will issue me Form-16A, but this company will give Form-16 so there are saying u r not in slab in our company, u need to pay urself. So pls advise me can I pay tax online? If yes, pls give me details how to pay.
Thank You Very Much
I am getting disabilty pension from armed force of Rs 1750/ basic per month .Is this income taxable.
you have not mentioned deduction for investments made Under Rajiv Gandhi equity savings scheme.
plz sent new update information of Taxation Reports and also
AFTER RETIREMENT ON 31-12-2014 FROM CENTRAL GOVT,I HAD PURCHASED CGHS (MEDICAL LONG LIFE SCHEME FROM MINISTRY OF HEALTH &FW)FOR VALUE OF Rs60,000/ FOR MY FAMILY . MY EN-QUERY IS WHETHER Rs60,000/ WILL BE EXEMPTED FROM INCOME TAX FOR FY- 2014-15.
I have purchased flat in under construction project in April 2014 and the same will be completed in 3/2016. My Annual EMI is 2.11 lakh interest and principal 1 lakh. How to claim this for FY 2014-15 ? Kindly inform relevant section and clauses. Presently I stay in govt officers quarters .
Sir, normal deduction of rs 200000/= lakhs but rs 20000/=also minuse from total amount what is rs.20000/=give me
reply
A senior citizen having a total income of Rs.300000\- has nil IT
Rebate under 87A is available for Rs.2000\-Therefor a senior having a total income up to Rs.3.20 Lakhs has no IT. Am I correct?
Sir, I want to know whether the amount received from ‘Voluntary Retirement Scheme’ rolled out by the PSUs is fully taxable and under which clause/rule it is so. please clarify at the earliest.
Education fee Howmany items
Sir,My Annual Salary for 2014-15 is Rs.3,11,000/- I am senior citizen aged 65 years.How much LIC premium(one time payment scheme) I have to payto save Income tax of Rs.1,100/-
Sir,how much is maximum deductible under chapter VI A this year
Sir,is monthly fees paid to school eligible for deduction under this chapter.
Dear Sir,
I had taken a home loan in Nov 2014 and property was
registered in December 2014 and first emi for loan started in january 2015 My bank has given me IT CERTIFICATE for financial year 2014 – 15 is Rs 131083 /- ;
whose breakup is as follows ;
Principal component : Rs 9161 /-
Interest component : Rs 121922 /-
The property is to be let out not already let out.
How I can show my it deduction for financial year 2014 – 15 ?
My CA says that to claim deductions for HUF life insurance is the only option and he prefers PPF amount not to be paid by HUF…. Can HUF NOT PAY PPF FOR ITS MEMBER AND CLAIM DEDUCTION… Also is it possible to open ppf account of minor ?
Sir,
The article about deduction of income tax ay 2014-15 has not been updated and misguides the public. I shall be very much obliged if you could publish an updated article incorporating the recent changes regarding enchancing the 80 c limit to Rs.1.5 lakhs.
My mother who is 88 yrs is dependent on me. She is suffering from many old age problems including hearing loss, locomotor disability etc..Nursing and medical expenses are met by me. Is it elegible for deduction under 80DD.
I have deposited a sum of Rs. 39020/- towards CGHS contribution for whole life medical treatment to me and my wife on 1st July 1914 after my superannuation on 30th June 2014. Let me know how much I may get the relief in income tax during the financial year 1914-15 and assessment year 1915-16 under s/c 80 D.
I have deposited Rs. 27030/- for whole life premium for health to central govt. health scheme. will i get the rebate on my income tax return for 2014-15. if yes than what rebate will i get rebate.
Sir,
Please let me know Rs. 1,00,000-00 deduction under 80 c for huf account for f.y. 2013-14 & 2014-15
Waiting for favorable reply,
prashant sonagarta
Lets say
G. Basic Pay – Rs.24,500 a month
HRA – Rs.17,780 a month.
&
Housing Loan EMI – Rs.7,225/- monthly.
Total yearly interest paid on Hsg loan – Rs.75,000,
total principle paid – Rs.11,000/-…
Approx TDS monthly Rs.1,200-1,500
Can Rent receipts of rs. 14000/- per month be appropaite to reduce tax burden OR show Housing Loan details only?
Can somebody tell me if Children education allowance and leave encashment is taxable or not
Very good and informative article.Thanks.
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.
sir, can u let me know what type of deductions are permissible for male individuals from salary & rented income (house property)
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
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
Very useful information for salaried employees, most of them remain unaware of these facts.
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?
good information
Sandeep
You need to file rectification petition u/s 154 to your AO
It is very useful information and Thanks for posting the same
i like this type of information
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.
Very useful info for individuals.
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
PPF maximum deposit in a year INR 1,00,000
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
very good information thanks
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
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
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.
80C is limited to Rs.100000/- for the A y 2013-14
Each of the spouse is a separate entity for assessment of its income.As such the tax benefit is available to the assessee only.
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
What is the maximum amount one can deposit in PPF in one financial year (during this current year)?
can 80 ccc tax benefits be availed even if the payment is made by the spouse