Deductions are the exemptions on the amount taxable as per Income Tax Act. They are the Investments made by the persons for them, their Family & their parents.
Article explains Income Tax Deduction Available to Individual and HUF under Section 80C, Section 80CCG, Section 80D, Section 80DD, Section 80DDB, Section 80E,Section 80EE, Section 80G, Section 80GG, Section 80GGB, Section 80RRB, Section 80TTA, Section 80TTB and Section 80U of Income Tax Act, 1961.
Deduction Under Sections 80C to 80U
| Section | For | Maximum Deduction Allowed | Investment |
| Section 80C | Self, Spouse, Children | 150000 | Fixed Deposits (having Lock in period of 5 year), Public Provident Fund (having lock in period of 15 years, but can be further extended by 5 year, Partial withdrawal is allowed after 7 year), Employee Provident Fund (Can be withdrawal 2 month after leaving of job otherwise after continuous service of 5 year or after retirement), National Pension System (Partial withdrawal is allowed after 15 year, Employer Contribution is tax free), Unit Linked Insurance Plan (Investment, Withdrawal & Maturity amount is Tax Free), Sukanya Samriddhi Yojna (A/c open in the name of a girl child before she attain the age of 10 years, Partial amount can be withdrawn after she reaches the age of 18 years, Investment, Withdrawal & maturity amount are tax free), Life Insurance Policy (deduction is valid only if premium paid is less than 10% of sum assured), Tuition Fees (Deduction is available only for 2 children whether it is in school, college, university etc), Repayment of Home Loan (For Construction a residential property, Deduction is available on stamp duty, registration fees, & transfer Expenses) |
| Section 80CCG | Self | 50% on investment | Their gross total Income Does not exceed 12 lakh per annum & First time Investment in Equity Share Deduction Allowed 50% of the investment & It is compulsory share are listed In CNX100 OR BSE 100. |
| Section 80D | Self, Spouse, Children Parents | 25000 FOR SELF ,SPOUSE, & CHILDREN
ADDITIONAL 25000 FOR PARENTS IF THEY ARE LESS THAN 60 YEARS AND 30000 IF THEY ARE MORE THAN 60 YEARS. Maximum deduction allowed is Rs. 100000 |
Deduction for Medical Insurance of self, spouse, children & parents. |
| Section 80DD | Individual or HUF (self, spouse, children & parents) | 75000 or 125000 | Deduction is allowed for rehabilitation of Handicapped Dependent Relative (Where Disability is 40% or more but less than 80% than fixed deduction allowed is Rs 75000 & where disability is 80% or more than deduction allowed is Rs. 125000. |
| Section 80DDB | Individual, Spouse, Parents & Childrens | 60000 OR 80000 | Deduction for Medical Treatment for seniors for specified diseases (If Person is up to 80 years than deduction allowed is Rs. 60000 & if person is above 80years than deduction allowed is Rs 80000) with regards to the expense. |
| Section 80E | Self, Spouse, Children | No Restriction | Deduction is available for Interest on Education Loan for Higher Studies. Deduction is available for maximum 8 years beginning from when the interest start getting repaid or till the entire interest is repaid whichever is earlier |
| Section 80EE | Self | 50000 per financial year | Deduction for Interest on Home Loan (towards first house property |
| Section 80G | Individual or HUF | 100% or 50% | Deduction allowed for Donation towards Social Causes There are Different way to calculate deduction of Donation according to the list as specified. |
| Section 80GG | Self | a. Rent paid minus 10% of adjusted total income
b. Rs 5,000/- per month c. 25% of adjusted total income* Adjusted Total Income: Income after adjusting all deductions, exempt income, long term capital gain & income relating to Non resident & foreign companies |
Deduction is available only when a person pay the rent but he did not received any HRA |
| Section 80GGB | Companies | 100% | Deduction allowed on contribution made by the companies to political party by any ways other than cash |
| Section 80RRB | Individual | 300000 | Deduction is allowed to the individual for the royalty received by him on patents. Deduction is allowed Income received of royalty or 300000 whichever is less. |
| Section 80TTA | Self & HUF | 10000 | Saving Bank Interest (Deduction allowed is Bank Interest or 10,000 Whichever is less) |
| Section 80TTB | Senior Citizens | 50000 | Deduction allowed to the senior citizens from the specified Income
1. Interest on Bank Deposits 2. Interest on post office Deposits 3. Interest on deposits held in co-operative society engaged in the business of banking including co-operative land mortgage bank or a co-operative land development bank. If Senior Citizen take the benefit of Deduction u/s 80TTA then, the person is not allowed for the deduction allowed u/s 80TTB. A senior citizen can opt only one deduction. |
| Section 80U | Individual | 75000 or 125000 | Deduction allowed for the person suffering from physical disability (If a person suffered from some small physical diseases like blindness or mental retardation than deduction allowed is Rs 75000 & if a person suffered from some severe disability than 125000 is allowed.) |
Hope the information will assist you in your Professional endeavours. In case of any query / information, please do not hesitate to write back to us at [email protected].
Author Bio
I AM A SENIOR CITIZEN AND DEPOSITED MONEY ON POST OFFICE SENIOR CITIZEN SAVING SCHEME. HOW TO CLAIM DEDUCTION UNDER SECTION 80TTB.
Complete package 🙂
Good article
its look like for more for assessee not for prof. as too much missing on 80 C part Like Premium for children and premium by HUF of its members etc.
Please correct the deduction under section 80 D for Senior Citizen as it is not 50,000.
Please correct me if i am wrong.
Why is ELSS missing in the list of deductions under 80-C? I presume that purchase of Units under ELSS continue to be eligible for deduction under sec 80 C.
Under sec 80 TTB the deduction allowed is 50,000 and not 5,00,000 as mentioned above.
Very informative article. However, sec.80 TTB needs more clarification on specified amount of interest! Similarly sec dealing with preventive medical check-up is not there.