Following are Deductions u/s 80C to 80U of Income Tax act 1961 for Individuals and HUF:
Section 80C
Deductions on Investments
Ø Maximum Limit Rs.150000/-
Ø Available for Self, Spouse and Children
Ø Investments considered under this section are:
§ 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)
§ 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Samriddhi Yojna (A/c open in the name of a girl child before she attains the age of 10 years, Partial amount can be withdrawn after she reaches the age of 18 years, Investment Withdrawal & maturity amount are tax free)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 80CCC
Deduction for Premium Paid for Annuity Plan of LIC or Other Insurer
§ Section 80CCC provides a deduction to an individual for any amount paid or deposited in any annuity plan of LIC or any other insurer. The plan must be for receiving a pension from a fund referred to in Section 10(23AAB). Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.
1) Section 80CCD Pension Contribution
§ Employee’s contribution under Section 80CCD (1):
Maximum deduction you can avail is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer being self-employed) or Rs 1.5 lakh whichever is less.
§ Deduction for self-contribution to NPS – section 80CCD (1B)
An additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.
§ Employer’s contribution to NPS – Section 80CCD (2)
Claim additional deduction on your contribution to employee’s pension account for up to 10% of your salary. There is no monetary ceiling on this deduction.
Section 80CCG
Rajiv Gandhi Equity Saving Scheme (RGESS)
Ø Maximum Limit – 50% of investment or Rs 25,000 for three consecutive Assessment Years.
Ø Available for Self
Ø Investments considered under this section are:
§ 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
Deduction for the premium paid for Medical Insurance
Ø Maximum Limit – (Rs. 25000 FOR SELF, SPOUSE, & CHILDREN, ADDITIONAL Rs.25000 FOR PARENTS IF THEY ARE LESS THAN 60 YEARS AND Rs.30000 IF THEY ARE MORE THAN 60 YEARS.)
Ø Maximum deduction allowed is Rs. 100000
Ø Available for Self, Spouse, Children Parents
Ø Investments considered under this section are:
§ Mediclaim
§ Preventive health check up (Allowed upto Rs.5000/- only)
Note: Mediclaim premium paid in cash is now allowed for deduction u/s 80D
Section 80DD
Deduction for Rehabilitation of Handicapped Dependent Relative
Ø Maximum Limit – (Rs. 75000 & Rs.125000)
Ø Available for Self, Spouse, Children Parents
Ø Investments considered under this section are:
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
Deduction for Medical Expenditure on Self or Dependent Relative
Ø Maximum Limit – (Rs. 40000 & Rs.100000)
Ø Available for Self, Spouse, Children Parents
Ø Deduction for Medical Treatment for seniors for specified diseases
§ 40,000/- or the amount actually paid, whichever is less.
§ In the case of a senior citizen and super-senior citizen, Rs.1,00,000 or amount actually paid, whichever is less.
Section 80E
Deduction for Interest on Education Loan
Ø No Maximum Limit
Ø Available for Self, Spouse, Children
Ø Investments considered under this section are:
§ 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:
Ø Maximum Limit – 50000 PER FY
Ø Available for Self
Ø Investments considered under this section are:
§ Deduction for Interest on Home Loan (towards first house property)
Section 80EEA: (New)
Ø Maximum Limit – A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act
Ø Available only for individuals
Ø Investments considered under this section are:
§ Under the objective “Housing for all”, the government has now extended the interest deduction allowed for low-cost housing loans taken during the period between 1 April 2019 and 31 March 2020.
To know conditions to claim the this deduction read our full article for this deduction.
Section 80EEB: (New)
Deduction in respect of interest paid on loan taken for the purchase of electric vehicle
Ø Maximum Limit – Interest payment upto Rs.150000
Ø Available only for individuals
Ø Investments considered under this section are:
§ The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31 March 2023.
Section 80G: Donations
Ø Maximum Limit – 100% or 50%
Ø Investments considered under this section are:
§ Deduction allowed for Donation towards Social Causes. Deduction is allowed as per qualified limits specified on donation slips.
Note: Donation receipt is mandatory to claim deduction u/s 80G
Section 80GG:
Ø Maximum Limit –
a. Rent paid minus 10% of adjusted total income
b. Rs 5,000/- per month
c. 25% of adjusted total income*
Ø Investments considered under this section are:
§ Deduction is available only when a person pay the rent but he did not received any HRA
Adjusted Total Income: Income after adjusting all deductions, exempt income, long term capital gain & income relating to Non resident & foreign companies Available for Self
THIS DEDUCTION IS AVAILABLE FOR BUSINESSMAN’S ALSO BUT DUE TO LACK OF KNOWLEDGE MANY OF THEM NOT CLAIMED THE SAME
Section 80RRB
Deduction with respect to any Income by way of Royalty of a Patent
Ø Maximum Limit – Rs.300000
Ø Available for Self
Ø Investments considered under this section are:
§ 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:
Ø Maximum Limit – Rs.10000
Ø Available for Self
Ø Investments considered under this section are:
§ Saving Bank Interest (Deduction allowed is Bank Interest or 10,000 Whichever is less)
Section 80TTB:
Ø Maximum Limit – Rs.50000
Ø Available for Senior citizens
Ø Investments considered under this section are:
§ Deduction allowed to the senior citizens from the specified Income:
o Interest on Bank Deposits
o Interest on post office Deposits
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
Section 80U:
Ø Maximum Limit – (Rs. 75000 & Rs.125000)
Ø Available for Self
Ø Investments considered under this section are:
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.)