Section 80C provides deduction from gross total income. The deduction is available only to an individual or HUF. The maximum permissible deduction is rupees 1, 50,000.
Contributions eligible for deduction- premium paid In respect of life insurance police (LIC), any sum deposited In sukanya samridhi account, contribution in plan of mutual funds, payment of tuitions fee, investment in five year post office time deposit etc.
Deduction in respect of Premium Paid to certain pension fund (section- 80CCC)
Where an individual has in the pervious year paid or deposited any amount out of his gross total income any annuity plan of LIC of India or any other insurer for receiving pension he shall be allowed a dedication in the total income. The maximum permissible deduction is rupees 1, 50,000.
But the interest and bonus credit to the assessee’s account shall not be including as contributation.
Deduction in respect of contributation to pension scheme (section- 80CCD)
The deduction is allowed to individual in respect of the amount paid or deposited by any employee in his pension account subject to maximum of 10% of his salary . the deduction in case of a self employed individual would be restricted to 20% of his gross total income .
Deduction for self-contribution to NPS – section 80CCD (1B) A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs 50,000 for the amount deposited by a taxpayer to their NPS account.
Central government has notified the ATAL PENSION YOJANA(APY) as pension scheme
Limit on deductions under sections 80C, 80CCC, 80CCD (section 80CCE)
This section restricts the aggregate amount of deduction under section 80C,80CCC, 80CCD to 1,50,000. It may be noted that the deduction of upto 50,000 under section 80CCD(1B) pension scheme allowed .
Deductions in respect of investment made under an equity savings scheme (section80CCG)
This deduction is allowed to new retail investor being a resident individual with the gross total income of up to 12 lakh for the investment in listed equity shares in according with a notified scheme.
The deduction is 50% of amount invested in such equity share or rupees 25,000 .whichever is lower.
Rajiv Gandhi Equity Scheme has been discontinued starting from 1 April 2017. Therefore, no deduction under section 80CCG will be allowed from financial year 2017-18.
Deductions in respect of medical insurance premium ( section 80D)
A deduction to the extent of RS25,000 is allowed in respect of the premium paid to effect or keep in force an insurance on the health of self , spouse and dependents children
A further deduction up to RS 25000 is allowed insurance on the health of parents
This deduction is allowed only if insurance premium is paid other than cash
An increased deduction of 50,000( instead of30,000) shall be allowed in case of parents is senior or super senior
Deduction is to the extent if 5000 shall be allowed in respect payment of preventive health check-up of self, spouses, dependent children or parents made during the year.
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Deduction in respect of maintenance including medical treatment of a dependent disabled (section80DD)
This deduction is allowed to individual or HUF
Any amount incurred for the medical treatment, training and rehabilitation of a dependant, being a person with disability or deposited under a scheme framed in this behalf by the LIC or any other insurer
The quantum of deduction is Rs 75,000 and in case of severe disability (with 80% or more disability) the deduction shall be Rs 1, 25,000.
Deduction in respect of medical treatment (section80DD)
This deduction is allowed is individual or HUF deduction shall be allowed to the amount actually or Rs 40000 whichever is less.
In case amount paid in respect of a senior citizen (individual of the age of 60 years or more but up to 80) then the deduction shall be the amount actually paid or 100,000 whichever is less.
In case amount paid in respect of a very senior citizen (individual of the age of 80 years or more) then the deduction shall be the amount actually paid or 100,000 whichever is less.
Deductions on Home Loan Interest self accupied house property by an individual (section 80EE)
Conditions to be satisfied for availing deduction
- The assessee should not own any residential house on the date of sanction of loan
- The value of the house property shall not be exceed 50 lakh
- The loan will be sanctioned from 1st April 2016 to 31st march 2017
- Loan sanctioned shall not exceed 35 lakh
Maximum deduction allowed is 50,000. The deduction of up to Rs 50,000 under section 80EE is over and above the deduction of up to 2, 00,000 available under section 24.
Deduction in respect of interest loan taken for higher education (section 80E)
Deduction to an individual –assessee in respect of any interest on loan paid by him in the previous year. The loan must be taking for the purpose of pursuing his higher education or for the purpose of higher education of his relative. The deduction is available for a maximum of 8 years. There is no maximum limit for claimed of deduction.
Deduction in respect of donation to charitable initiations (section 80G)
Deduction in respect of rent paid (section 80GG)
This deduction in respect of rent paid
The assessee should not be receiving any house rent allowed exception 10(13A)
Quantum deduction
- Actual rent paid minus 10% of the total income of the assessee before allowing the deduction
- 25% of the total income
- Amount calculated at Rs 5,000 per month
Deduction in respect of donations for scientific research and rural development (section 80GGA)
Deduction in respect of contributions given by companies to political parties (section80GGB)
This section provides of any sum contribution in the previous year by an Indian company to any political party or any electoral trust. However no deduction shall be allowed in respect of any contribution by way of cash.
Deduction in respect of contributions given by any person to political parties (section80GGC)
This deduction will be allowed to a taxpayer except to an Indian company, local authority and an artificial juridical person, wholly or partly funded by the government. However no deduction shall be allowed in respect of any contribution by way of cash.
Deduction in respect of royalty income, etc. of authors of certain books other than text books (section 80QQB)
Deduction of up to a maximum Rs 3, 00,000 is allowed to an individual resident in Indian in respect of income deriver as author (Deduction shall be the income derived as author or 3,00,000 Whichever is less)
For the purposes of calculating the under the section the amount of the section shall not be exceed 15% of the value of the books sold.
his deduction shall not be allowed in respect of royalty income from textbook for schools, guides, commentaries, newspaper, journals and other publications of similar nature.
Deduction in respect of royalty on patents (Section 80RRB)
Deduction to a resident individual in respect of income by way of royalty of a patent registered on or after 1.04.2003 up to an amount of Rs 3, 00,000 or income received whichever is less. The taxpayer must furnish a certificate in the prescribed manner duly signed by the prescribed authority.
This deduction is not available on any consideration for sales of product manufactured with the use of the patented article for commercial use.
Deduction in respect of interest on deposits in savings account (section80TTA)
In case the gross total income of an assessee being an individual or HUF included any income by way of an interest on deposits in a saving account. Deduction can be claimed of the total interest earned or Rs 10,000, whichever is less. interest on deposits from savings account maintained with bank, co-operative society, or post office.
Deduction in respect of interest on deposits for senior citizen (section80TTB)
Deduction in respect of interest income from deposits held by senior citizens will be allowed as a deduction from the total income the limit for this deduction is Rs. 50,000. Further there shall be no deduction allowed under section 80TTA.
Deduction in the case of a person with disability (section80U)
This section is applicable to a resident individual who at any time during the previous year is certified by the medical authority to be a person with disability. A deduction of 75,000 in respect of a person with disability and 1, 25,000 in respect of a person with severe disability (having more than 80%) is allowed under section.
The benefits of deduction under section have also been extended to person suffering from autism, cerebral palsy and multiple disabilities.
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