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Deductions allowed under the income tax act help you reduce your taxable income. You can avail the deductions only if you have made tax-saving investments or incurred eligible expenses. There are a number of deductions available under various sections that will bring down your taxable income. The most popular one is section 80C of Chapter VIA. Other preferred dedcutions under chapter VIA are 80D, 80E, 80G, 80DDB and so on. In this article, let us discuss some of the important deductions under chapter VIA that a taxpayer can claim.
| Sr.no | Section | Details | Limit |
| 1. | 80C | Payment towards Life Insurance Premium | Rs.150000 |
| 2. | Provident Fund | ||
| 3. | Repayment of Housing Loan (Principal Component) | ||
| 4. | National Savings Certificate (Accrued Interest) | ||
| 5. | National Savings Certificate (New Deposits) | ||
| 6. | Unit Linked Insurance Premium (ULIP) | ||
| 7. | Cumulated Time Deposits | ||
| 8. | Investments made in Debentures/Shares of Companies as approved by CBDT | ||
| 9. | Educational Expenses (including payment of Educational fees for self, spouse and children) | ||
| 10. | Equity Linked Savings Scheme or Mutual Funds approved by CBDT. | ||
| 11. | 80CCC | Deduction in respect of contribution to certain pension funds i.e contribution towards pension funds offered by Public or private sector Insurers. | |
| 12. | 80CCD (1) | Deduction in respect of contribution to certain pension funds u/s i.e Contributions made to Pension plans offered by the Central Government are eligible for tax deductions which are manly National Pension Scheme and Atal Pension Yojana | 10% of the salary (Basic+D.A) or 20% of the Gross Total Income (in case of Self Employed Professional). However this limit shall not exceed beyond Rs.150000 along with Section 80C and 80CCC. |
| 13. | 80CCD(1B) | Additional Deduction for National Pension System Contribution. | Rs.50000/- (This is over and above the limit of Rs.150000/-) |
| 14. | 80CCD(2) | Deduction in respect of employer contribution to pension scheme of Central Government u/s 80CCD(2) | 10% of basic Salary plus Dear Allowance |
| 15. | 80D | Deduction in respect of Medical Insurance Premium | 1.Rs.25000 (for self, Spouse and Children)
2.Rs.25000 (for parents less than 60 years of age); Rs.50000 (for parents more than 60 years of age) |
| 16. | 80DD | Deduction in respect of maintenance including medical treatment of handicapped dependent | 1. Rs.75000 for person with disability and Rs.125000 for person with Severe disability. |
| 17. | 80DDB | Deduction toward Medical treatment etc. | 1.Rs.40000 or amount actually paid whichever is less for taxpayers less than 60 years of age.
2.Rs.10000 or amount actually paid for Senior Citizens |
| 18. | 80E | Deduction in respect of interest on loan taken for higher education. | Deduction can be availed for a maximum period of 8 years. There is no maximum limit. |
| 19. | 80EE | Deduction in respect of interest on loan taken for residential house property | Rs.50000 per annum until the loan is repaid. This deduction is over and above the deduction of Rs.2 Lakhs u/s 24. |
| 20. | 80EEA | Deduction in respect of interest on loan taken for residential house property under affordable housing scheme purchased in the Financial Year 2019-20. | Rs.150000 per annum until the loan is repaid. This deduction is over and above the deduction of Rs.2 Lakhs u/s 24. |
| 21. | 80G | Deduction in respect of donation to certain funds, charitable institutions etc. | – |
| 22. | 80GG | Deduction in respect of rents paid | Deduction shall be least of:-
1.Actual Rent paid minus 10% of Adjusted Total Income 2.Rs.5000 per month 3.25% of Adjusted Total Income |
| 23. | 80GGA | Deduction in respect of certain donations for Scientific research or rural development. | Contributions made towards the organisation or Institution or Colleges engaged in Scientific research and Rural Development. No Maximum limit applicable. |
| 24. | 80GGC | Deduction in respect of contributions given by any person to political parties. | No limit applicable |
| 25. | 80HH | Profits and Gains from newly established industrial undertaking or hotel business in backward areas | 20% of the Profits or gains from the Business. |
| 26. | 80HHA | Profits and Gains from newly established small scale industrial undertaking areas | 20% of the Profits or gains from the Business |
| 27. | 80HHBA | Profits and Gains from Housing Project | 50% of the Profits or gains from the Business |
| 28. | 80JJAA | Employment of New Workmen | Assesse engaged in Tax Audit shall be eligible for additional 30% deduction of hire of new employees with certain prescribed conditions. |
| 29. | 80O | Royalties from Foreign Enterprises etc. | No Maximum Limit |
| 30. | 80P | Income of Cooperative Societies | 100% deduction if engaged into certain specified activities. |
| 31. | 80QQB | Royalty Income etc. of Authors of certain books other than text books | Rs.300000 or original amount of royalty amount received whichever is less. |
| 32. | 80TTA | Deduction in respect of interest on deposits in savings account | Rs.10000 |
| 33. | 80TTB | Deduction in respect of interest on all types of deposits in case of senior citizens | Rs.50000 |
| 34. | 80U | Deduction in case of permanent physical disability | Rs.75000 for person with 80% disability and Rs.125000 with more than 80% disability. |
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In sec.80DDB Deduction Amt. 1,00,000 not 10,000 in case of senior citizen.
Deductions for interest on loan U/s 80EE and 80EEA are not over and above 24(b) of the Act as understood from the literal interpretation of 80EE(4) and 80EEA(4). Kindly clarify in this regard.
u/s 80U e-filing portal is not permitting deduction of 1.25L for more than 80% disability. What could be the reason pls? Eligible amount brings it down to 75K
Sir,
How much standard deduction is allowable on income from remuneration received, rent received and on professional fees received, please guide.
thanks
prakash
Section 80D, explicit issue. Please resolve.
₹50000/- deduction for all senior citizen not just for dependent parents.
Hi,
Please tell me:-
In Income tax Section 80TTB benefit is available in new tax regime or not ?
Section 80DDB – Can deduction be claimed for continuous 2 or 3 financial years in case the treatment of eligible disease say Cancer, also continue for 2 to 3 years.
Sir,
80 DDB deduction limit for senior citizens has been mentioned as Rs 10,000 instead of Rs 1 Lakh.
Pl rectify.