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 |
---|---|---|
|
Rs. 1,50,000 |
|
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 |
Rajiv Gandhi Equity Scheme for investments in Equities |
Lower of – 50% of amount invested in equity shares or Rs 25,000 |
|
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 |
|
|
80DD |
Handicapped medical treatments /maintenance payements of handicapped person –
|
|
80DDB |
Medical Expenditure on Self or Relative for diseases specified in Rule 11DD
|
|
80U |
Self suffering from disability:
|
|
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.
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