Deductions Allowable to Individuals & HUFs under various sections of Chapter VI A

Section 80C For investments in specified schemes, saving instruments etc.
Exemption Up to 1,50,000 (Subject to overall limit of ₹ 1,50,000 under Section 80C, 80CCC and 80CCD)
Available to Individual and HUF
Available for 1.                         Life insurance premium for policy:
a) in case of an individual, on the life of assessee, assessee’s spouse and any child of assessee
b) in the case of HUF, on a life of any member of the HUF2.                         A sum paid under a contract for a deferred annuity:
a) in case of an individual, on the life of the individual, individual’s spouse and any child of the individual (however, a contract should not contain an option to receive a cash payment in lieu of annuity)
b) in the case of HUF, on a life of any member of the HUF

3.                         Sum deducted from the salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]

4.                         Contributions by an individual made under Employees’ Provident Fund Scheme

5.                         Contribution to Public Provident Fund Account in the name of:
a) in case of an individual, such individual or his spouse or any child of such individual
b) in the case of HUF, in the name of any member thereof

6.                         Contribution by an employee to a recognized provident fund

7.                         Contribution by an employee to an approved superannuation fund

8.                         Subscription to any notified security or notified deposit scheme of the Central Government.
For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. The amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.

9.                         Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]

10.                    Contribution for participation in unit-linked Insurance Plan of UTI:
a) in case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of a HUF, in the name of any member thereof

11.                    Contribution to notified unit-linked insurance plan of LIC Mutual Fund:
a) in the case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of a HUF, in the name of any member thereof

12.                    Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]

13.                    Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full-time education of any 2 of his/her children

14.                    Certain payments for purchase/construction of residential house property

15.                    Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying the need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both

16.                    Sum paid towards notified annuity plan of LIC or another insurer

17.                    Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)

18.                    Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)

19.                    Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions

20.                    Subscription to any units of any approved mutual fund referred to in section 10(23D), provided the amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above.

21.                    Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.

22.                    Subscription to notified bonds issued by the NABARD.

23.                    Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)

24.                    5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)

 

 

Section 80CCD(1) Deduction for assessee’s contributions to pension scheme of Central Government
Exemption 10% of salary in case of employees
10% of gross total

Section 80CCC Contribution to certain specified Pension Funds
Exemption Up to 1,50,000 (Subject to the overall limit

of ₹ 1,50,000

under Section 80C,

80CCC and 80CCD(1))

Available to Individual
Details Contribution to certain specified Pension Funds

of LIC/ another insurer

(Subject to certain conditions).

income in case of others
(Subject to the overall limit of ₹ 1,50,000 under Section 80C, 80CCC and

80CCD(1))

Available to Individual

 

Section 80CCD(1B) Deduction for the deposit under a pension scheme notified by Central Government (NPS)
Exemption Up to ₹ 50,000. This deduction shall be in addition to deduction

of ₹ 1,50,000 under Section 80C, 80CCC and 80CCD(1)

Available to Individual

 

Section 80CCD(2) Deduction for employer’s contributions to a pension scheme

notified by Central Government

Exemption Up to 10% of salary
Available to Individual

 

Section 80 CCG Amount invested in listed shares
Exemption Deduction of 50% of total investment subject to maximum

of ₹ 25,000 is allowed for 3 consecutive assessment years,

beginning with the assessment year relevant to the previous year

in which the listed shares or list units of equity oriented funds are

first acquired

Available to Specified Resident Individual – A resident individual whose gross

total income for the relevant assessment year is not more

than ₹ 12 lacs.

Amendment No deduction under section 80CCG shall be allowed from assessment

the year 2018-19. However, an assessee who has claimed a deduction

under this section for the assessment year 2017-18 and earlier

assessment

years shall be allowed deduction under this section till the

assessment

the year 2019-20 if he is otherwise eligible to claim the deduction

as per the

provisions of this section.

This amendment will take effect from the 1st April, 2018 and shall

accordingly, apply in relation to the assessment year 2018-19 and

subsequent years.

Details Amount invested by specified resident individuals in listed shares or

listed units in accordance with the notified scheme for a lock-in period

for 3 years (Subject to certain conditions).

 

Section 80D Amount invested in Health Insurance
Exemption In case of Individual, amount paid:
a) For self, spouse and dependent children: Up to ₹ 25,000 [₹ 50,000 ifspecified person is a senior citizen or very senior citizen for

AY 2019-20 ( ₹ 30,000 for AY 2018-19)]

b) FFor parents: additional deduction of Rs. 25,000 shall be allowed

[Rs. 50,000 if parent is a Senior citizen / Very Senior Citizen

( ₹ 30,000 for AY 2018-19) ]

In case of HUF, up to ₹ 25,000 (₹ 50,000/- ( ₹ 30,000/- for AY 2018-19 )

if specified person is a senior citizen or very senior citizen).

The aggregate amount of deduction cannot exceed ₹ 1,00,000/- for

AY 2019-20 ( ₹ 60,000 for AY 2018-19 ) in case of

an

individual
and ₹ 50,000/- for AY 2019-20 ( ₹ 30,000 for AY 2018-19 ) in case of HUF.

Available to Individual / HUF
Details Amount paid (in any mode other than cash) by an individual or HUF to

LIC or another insurer to effect or keep in force an insurance on the health of

specified person*. An individual can also make payment to the Central

Government health scheme and/or on account of preventive health check-up.

* specified person means:

– In case of Individual – self, spouse, dependent children or parents

– In case of HUF – Any member thereof

Note:

1. Deduction for preventive health check-up shall not exceed in aggregate ₹ 5,000.

2. Payment on account of preventive health check-up may be made in cash.

3. Within overall limit, the deduction shall also be allowed up to ₹ 30,000

towards medical expenditure incurred on the health of specified person provided such

person is a very senior citizen and no amount has been paid to effect or to keep in force

an insurance on the health of such person.

4. ‘Senior citizen’ means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

5. ‘Very senior citizen’ means an individual resident in India who is of the age

of eighty years or more at any time during the relevant previous year.

 

Section 80DD Expenditure incurred for the medical treatment of a dependent
Exemption ₹ 75,000 (₹ 1,25,000 in case of severe disability)
Note:
“dependant” means –
(i) in the case of an individual, the spouse, children, parents, brothers andsisters of the individual or any of them;
(ii) in the case of a HUF, any member thereof, dependant wholly or mainly

on such individual or Hindu undivided family for his support and maintenance,

and who has not claimed any deduction under section 80U in computing

his total income for the assessment year relating to the previous year.

Available to Resident Individual and HUF
Details a) Any expenditure incurred for the medical treatment (including nursing),

traing and rehabilitation of a dependent, being a person with a disability
b) Any amount paid or deposited under an approved scheme framed in

this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with a disability
(Subject to certain conditions).

 

Section 80DDB Expenditure incurred for medical treatment of specified diseases
Exemption Up to ₹ 40,000 and ₹ 1,00,000 for Senior / Very Senior Citizen
( ₹ 60,000/- for Senior Citizen and ₹ 80,000 for Very Senior Citizen up to 31stMarch 2017)
Available to Resident Individual and HUF
Details Expenses actually paid for medical treatment of specified diseases

and ailments for:

a) In case of Individual: Assessee himself or wholly dependent spouse,

children, parents, brothers, and sisters
b) In case of HUF: Any member of the family who is wholly dependent

upon the family
(Subject to certain conditions).

 

Section 80E Interest paid on Educational Loan
Exemption The amount of interest paid during the initial year and 7 immediately

succeeding assessment years (or until the above interest is paid in full).

Available to Individual
Details Amount paid out of income chargeable to tax by way of payment of interest

on loan is taken from financial institution/approved charitable institution for

pursuing higher education (Subject to certain conditions).

 

Section 80EE Interest on loan for acquiring residential house property, sanctioned

during FY 2016-17

Exemption Deduction of up to ₹ 50,000 towards interest on the loan.
Available to Individual
Details Interest payable on loan was taken up to ₹ 35 lakhs by a taxpayer from

any a financial institution, sanctioned during the FY 2016-17, for the

purpose of  acquisition of a residential house property whose value

doesn’t exceed  ₹ 50 lakhs.

Note:

1. On the date of sanction of the loan, the taxpayer should not own any other

residential house property.

2. The deduction is available from Assessment Year 2017-18 and

subsequent assessment years.

 

Section 80G Deduction for donations to certain funds, charitable institutions, etc.
Exemption Deduction upto 100% / 50% of the aggregate amount of donation.

For details please refer setion 80G of Income Tax Act.

Available to All assessees

 

Section 80GG Rent paid for residential accommodation
Exemption Least of the following shall be exempt from tax:
a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) ₹ 5,000 per month.
* Total Income = Gross total income minus long term capital gains, short-term capitalgains under section 111A, deductions under sections 80C to 80U (other than 80GG)

and income under section 115A

Available to Individual not receiving HRA
Details Rent paid for furnished/unfurnished residential accommodation

(Subject to certain conditions)

 

Section 80QQB Royalty income of books
Exemption Least of the following shall be exempt from tax:
a) In case of Lump sum payment – Amount of royalty income subjectto the maximum of ₹ 3,00,000

b) In other cases -the amount of such income subject to a maximum of

15% of the value of books sold during the previous year.

Available to Resident Individual Authors
Details Royalty income of authors of a certain specified category of books

other than text books

 

Section 80RRB Royalty of patents
Exemption 100% of royalty subject to a maximum of ₹ 3,00,000
Available to Resident Individual – Patentee
Details Royalty in respect of patents registered on or after 01.04.2003

(subject to certain conditions)

 

Section 80 TTA Interest on Savings Bank accounts
Exemption 100% of the amount of such income subject to a maximum of ₹ 10,000
Available to Individual and HUF (w.e.f. 01.04.2018 not available to Senior / Very Senior

Citizens)

Details Interest on deposits in saving account with a banking company, a

post office, co-operative society engaged in banking business, etc.

(Subject to certain conditions)

 

Section 80 TTB Interest on deposits with Post Offices, Banks, Co-operative banks

(w.e.f. 01.04.2018)

Exemption 100% of the amount of such income subject to a maximum of ₹ 50,000
Available to Senior Citizen Resident Individual and HUF
Details Interest on deposits in saving account with a banking company,

a post office, co-operative society engaged in banking business, etc.

(Subject to certain conditions)

 

Section 80U Persons with Disability
Exemption ₹ 75,000 (₹ 1,25,000 in case of severe disability)
Available to Resident Individual
Details A resident individual who, at any time during the previous year, is certified

by the medical authority to be a person with a disability [as defined under

Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation)

Act, 1995]

 

Section 16(ia) Standard Deduction
Exemption ₹ 40,000 in lieu of Transport allowance and Reimbursement of Misc.

Medical Expenditure

Available to Salaried Tax Payers w.e.f. 01.04.2018

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