Contents

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 Return, Bulk Return or Revised Return Filing.