DEDUCTIONS UNDER INCOME TAX ACT

Section 80C: Deduction of up to Rs. 1.50 lakh for investments in EPF, NSC,PPF,ELSS, LIP, Sukayya Samriddhi Scheme, Tuition Fees, Repayment of Housing Loan Principal amount, Tax-Saving Fixed Deposits, etc.

Section 80CCC: For contributions made to annuity plans of LIC or any other insurer for receiving pension.

Section 80CCD (1): For contributions made by individuals to eligible NPS

Maximum permissible deduction under sections 80C, 80CCC, and 80CCD (1) put together is Rs. 1,50,000

Section 80CCD(1B): Additional Income tax deduction of Rs. 50,000/-for contributions made by individuals to eligible NPS

Section 80CCD (2): An income tax deduction for contributions by an employer to eligible NPS. The deduction amount shall be restricted to 14% of salary (Basic salary + DA) in case of Govt. employees and 10% in case of any other employees.

Section 80D: Deduction of Rs. 25000 to Rs. 75000 subjected to some conditions for medical insurance premium, expenditure on preventive health check-up, other medical expenditure.

Section 80DD: Deduction for medical treatment of a dependent with disability.

Section 80DDB: Income tax deduction for specified diseases.

Section 80E: Income tax deduction for interest paid on higher education loan.

Section 80EE: Additional deduction for home loan up to rs. 50,000 in respect of the interest on a loan taken by an individual to acquire residential house property from any financial institution.

Section 80EEA: Additional deduction for first time home buyers.

Section 80EEB: Deduction of Rs. 1,50,000/- for repayment of electronic vehicle loan.

Section 80G: Deduction in respect of donations made to specified funds and charitable institutions etc. 

Section 80GG: Income tax deduction for house rent paid.

Section 80GGA: Income tax deduction for donation towards scientific research & rural development.

Section 80GGB: Income tax deduction for donation to political parties.

Section 80GGC: Income tax deduction in respect of contributions given by any person to political parties.

Section 80RRB: Income tax deduction for royalty on patents.

Section 80QQB: Income tax deductions for royalty income of authors.

Section 80U: Income tax deduction for disabled individuals.

Section 80TTA: Deduction of Rs. 10,000/- in respect of interest on deposits in savings account.

Section 80TTB: Deduction of RS. 50.000/ in respect of interest from deposits held by senior citizens.

Frequently Asked Questions (FAQ's) :

Q- What is the maximum amount allowed as deduction under Section 80C?

It is Rs. 1.50 lakh per year.

 Q- Whether recurring deposits (RD) is allowed as deduction U/s 80C?

No, recurring deposits is not allowed as deduction but 5 years tax saving fixed deposit allowed as deduction.

 Q- Whether Provident Fund allowed as deduction under section 80C?

Yes, the provident fund allowed but for employee’s contribution not for employer’ contribution.

 Q- Whether SIP is allowed as deductions under Section 80C?

SIP of ELSS comes under Section 80C, but not cover investment in other mutual fund SIPs.

 Q- What is the difference between deduction on NPS under section 80CCD(1B) and 80C?

NPS can be claimed upto Rs. 1,50,000 under section 80C where deduction under section 80CCD(1B) can be claimed additionally upto Rs. 50,000.

 Q- Can deduction of Section 80E be claimed if the assessee is pursuing higher education from outside India?

Assessee can claim a deduction U/s 80E for pursuing higher education outside India, provided the loan is taken in India.