Introduction

A deduction from total income is allowed to be deducted from the total income while calculating the Income Tax to be paid by the Assessee because economies with high inflation rates like in India, People’s savings are necessary to sustain the optimum level of demand which helps to boost manufacturing, services, and jobs in the country. The government encourages people to save by providing them tax deduction under section 80C to 80U for various investments, expenses, and payments made by the individual or an HUF in a given financial year.

Various sections for tax deduction

Section Deduction on Limits/Condition for deduction

Section 80C

  • Investment in PPF
  • Employee’s share of PF contribution
  • NSCs
  • Life Insurance Premium payment
  • Children’s Tuition Fee
  • Principal Repayment of home loan
  • Investment in Sukanya Samridhi Account
  • ULIPS
  • ELSS
  • Sum paid to purchase deferred annuity
  • 5 year deposit scheme
  • Senior Citizens savings scheme
  • Subscription to notified securities/notified deposits scheme
  • Mutual Fund or UTI notified contribution to Pension Fund.
  • Contribution to Home Loan Scheme
  • Contribution to deposit scheme of a public sector or company engaged in providing housing finance
  • Contribution to notified annuity Plan of LIC
  • equity shares/ debentures subscriptions
  • NABARD bonds subscription

Rs. 1,50,000

80CCC

For money deposited in LIC for any annuity plan or to any other insurer for pension.

80CCD(1)

Employee’s contribution to NPS account

80CCD(2)

Employer’s contribution to NPS account

Maximum up to 10% of salary

80CCD(1B)

Additional contribution to NPS

Rs. 50,000

80TTA(1)

Interest Income from Savings account

Maximum up to 10,000

80GG

For rent paid when HRA is not received from employer

Least of rent paid minus 10% of total income or Rs. 5000/- per month or 25% of total income

80E

education loan interest

Interest paid duration of 8 years

80EE

home loan interest for the first time home owners

Rs 50,000

80CCG

Rajiv Gandhi Equity Scheme for investments in Equities

Lower of – 50% of amount invested in equity shares or Rs 25,000

80D

Medical Insurance – Self, spouse, children Medical Insurance of Parents under 60-80 years old or (from FY 2015-16) uninsured parents more than 80 years old

  • Rs. 25,000
  • Rs. 30,000

80DD

Handicapped medical treatments /maintenance payements of handicapped person –

  • Disability is 40% or more but less than 80%
  • Disability 80% or more

  • Rs. 75,000
  • Rs. 1,25,000

80DDB

Medical Expenditure on Self or Relative for diseases specified in Rule 11DD

  • For less than 60 years old
  • For more than 60 years old
  • For more than 80 years old
  • Lower of Rs 40,000 or the amount actually paid
  • Lower of Rs 60,000 or the amount actually paid
  • Lower of Rs 80,000 or the amount actually paid

80U

Self suffering from disability:

  • Person suffering from any physical disability or mental retardation.
  • Person suffering from disorder

  • Rs. 75,000
  • Rs. 1,25,000

80GGB

Political parties contribution by companies

Amount contributed (not allowed in cash)

80GGC

Political parties contribution by Person

Amount contributed (not allowed in cash)

80RRB

Income deductions by Royalty of a Patent

Lower of Rs 3,00,000 or income received


For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business ReturnBulk Return or Revised Return Filing.