Deductions

Section 80C: Deductions on Investments
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• Eligible Investments:

  • Life Insurance Premium

  • Employee Provident Fund (EPF)

  • Public Provident Fund (PPF)

  • National Savings Certificates (NSC)

  • Tax-saving Fixed Deposits (FD) with a minimum tenure of 5 years

  • Equity Linked Savings Schemes (ELSS)

  • Principal repayment of home loan

  • School fees for children (up to 2 children). (Note that this is exempt to the extent of actual expense incurred)

  • Sukanya Samriddhi Yojana

  • Maximum Deduction: ₹1.5 lakh per year.

Section 80CCC: Pension Funds

• Maximum Deduction: ₹1.5 lakh per year.

• Eligible Contributions: Premium paid towards annuity plans of LIC or other insurers for receiving pension.

• Overall limit: Combined limit of ₹1.5 lakh with Section 80C.

Section 80CCD (1): National Pension Scheme (NPS)

• Maximum Deduction:

  • 10% of salary (for salaried employees)

  • 20% of gross total income (for self-employed individuals)

• Overall limit: Combined limit of ₹1.5 lakh with Section 80C and Section 80CCC.

Section 80CCD(1B): Additional NPS Contribution

• Maximum Deduction: ₹50,000 per year.

• Eligible Contributions: Voluntary contributions to NPS over and above the limit of Section 80C and 80CCC.

Section 80D: Medical Insurance

• Maximum Deduction:

  • ₹25,000 for premium paid for self, spouse, and children.

  • ₹50,000 if the assessee/spouse is a senior citizen.

  • Additional ₹25,000 for parents (₹50,000 if parents are senior citizens).

  • Extra ₹5,000 for preventive health check-ups (within the above limits).

  • Medical expenditure incurred for senior citizen without insurance plan is exempted upto 50k subject to availability of bills.

• Eligible Expenses: Health insurance premiums, preventive health check-ups.

Section 80DD: Maintenance of Disabled Dependents

• Maximum Deduction:

  • ₹75,000 for normal disability.

  • ₹1.25 lakh for severe disability.

• Eligible Expenses: Expenditure on medical treatment, training, and rehabilitation of a disabled dependent.

• Eligible Disabilities: Mental illness, Hearing impairment, Mental retardation, Cerebral palsy, Leprosy-cured, Autism, Loco motor disability, Blindness and Low vision.

• Eligibility Criteria: It is mandatory to produce a certificate of disability issued by a government hospital’s Civil Surgeon or Chief Medical Officer (CMO) or a Neurologist with a Doctor of Medicine (MD) degree in Neurology. In case of a child, a Pediatric Neurologist holding an equivalent degree.

Section 80DDB: Treatment of Specified Diseases

• Maximum Deduction:

  • ₹40,000 for individuals below 60 years.

  • ₹1 lakh for senior citizens.

• Eligible Expenses: Expenditure on medical treatment of specified diseases like cancer, chronic renal failure, etc.

Section 80E: Interest on Education Loan

• Maximum Deduction: No upper limit.

• Eligible Expenses: Interest paid on education loan for higher education of self, spouse, children, or a student for whom the taxpayer is a legal guardian.

Section 80EE: Interest on Home Loan (First-Time Home Buyers)

• Maximum Deduction: ₹50,000 per year.

• Eligible Expenses: Interest paid on home loan for property value up to ₹50 lakh, with the loan amount up to ₹35 lakh. This loan should be sanctioned between April 1st, 2016 to March 31st 2017.

Section 80G: Donations to Charitable Institutions

• Maximum Deduction: Varies based on the organization (50% or 100% of the donation amount subject to a maximum of 10% of adjusted gross total income).

• Eligible Donations: Contributions to specified funds and charitable institutions.

Section 80GG: Rent Paid

• Maximum Deduction: Least of the following:

  • ₹5,000 per month.

  • 25% of total income.

  • Rent paid minus 10% of total income.

• Eligibility: Available to individuals who do not receive HRA and do not own residential property at the place of employment.

Section 80GGA: Donations for Scientific Research or Rural Development

• Maximum Deduction: 100% of the donation amount.

• Eligible Donations: Contributions to approved scientific research associations or rural development programs.

Section 80GGC: Contributions to Political Parties

• Maximum Deduction: 100% of the contribution.

• Eligible Donations: Donations made to political parties registered under Section 29A of the Representation of the People Act, 1951.

Section 80TTA: Interest on Savings Accounts

• Maximum Deduction: ₹10,000 per year.

• Eligible Interest: Interest earned on savings accounts with banks, post offices, or cooperative societies.

Section 80TTB: Interest on Deposits for Senior Citizens

• Maximum Deduction: ₹50,000 per year.

• Eligible Interest: Interest earned on savings accounts, fixed deposits, and recurring deposits for individuals aged 60 years and above.

Section 80U: Disability of an Individual

• Maximum Deduction:

  • ₹75,000 for normal disability.

  • ₹1.25 lakh for severe disability.

• Eligibility: Available to individuals with a disability as defined under the law. Certificate of disability issued by

• Eligible Disabilities: Mental illness, Hearing impairment, Mental retardation, Cerebral palsy, Leprosy-cured, Autism, Loco motor disability, Blindness and Low vision.

• Eligibility Criteria: It is mandatory to produce a certificate of disability issued by a government hospital’s Civil Surgeon or Chief Medical Officer (CMO) or a Neurologist with a Doctor of Medicine (MD) degree in Neurology. In case of a child, a Pediatric Neurologist holding an equivalent degree.

Section 80EEA: Interest on Home Loan for Affordable Housing

• Maximum Deduction: ₹1.5 lakh per year.

• Eligible Expenses: Interest paid on home loans for affordable housing. The property value should not exceed ₹45 lakh, and the loan must be sanctioned between 1st April 2019 and 31st March 2022. This is over and above the deduction under Section 24(b) of up to ₹2 lakh for interest on home loans.
   

Section 80EEB: Interest on Loan for Electric Vehicles

• Maximum Deduction: ₹1.5 lakh per year.

• Eligible Expenses: Interest paid on loans taken for purchasing electric vehicles, applicable for loans sanctioned between 1st April 2019 and 31st March 2023.
   

Section 80IBA: Profits from Affordable Housing Projects

• Maximum Deduction: 100% of the profits and gains.

• Eligibility: For developers of affordable housing projects approved between 1st June 2016 and 31st March 2020.

Section 80QQB: Royalty Income of Authors

• Maximum Deduction: ₹3 lakh per year.

• Eligibility: Royalty income from literary, artistic, or scientific books. The deduction is available for Indian authors only.

Section 80RRB: Royalty on Patents

• Maximum Deduction: ₹3 lakh per year.

• Eligibility: Royalty income received by residents of India for patents registered under the Patents Act, 1970.

Section 24(b): Interest on Home Loan

• Maximum Deduction

  • ₹2 lakh per year for self-occupied property.

  • Actual interest for let-out property.

  • Eligibility: Interest paid on loans taken for purchase, construction, repair, renewal, or reconstruction of a residential property.
     

Section 10(10D): Life Insurance Policy Payout

• Eligibility: Sum received under a life insurance policy, including bonuses. The policy must satisfy certain conditions regarding premium, and sum assured.

   

Section 10(10C): Voluntary Retirement Scheme (VRS)

• Maximum Deduction: ₹5 lakh.

• Eligibility: Amount received under VRS is exempt, provided certain conditions are met.

Section 10(13A): House Rent Allowance (HRA)

• Maximum Deduction: Least of the following:

  • Actual HRA received.

  • Rent paid minus 10% of salary.

  • 50% of salary (for metros) or 40% of salary (for non-metros).

• Eligibility: Employees receiving HRA as part of their salary.

Section 10(14): Special Allowances

• Eligibility: Certain special allowances granted to employees to meet expenses incurred in the performance of their duties. These allowances are exempt to the extent they are actually incurred for the purpose.

Section 80GG: Rent Paid by Self-Employed Individuals

• Maximum Deduction: The least of the following:

  • ₹5,000 per month.

  • 25% of total income.

  • Rent paid minus 10% of total income.

• Eligibility: Available to individuals who do not receive HRA and do not own residential property at the place of employment.
   

Section 10(36): Exemption of Income from Sale of Rural Agricultural Land

• Eligibility: Capital gains due to the sale of a rural agricultural land where agricultural activity has been done for the previous 2 years is exempt.

   

Section 10(43): Reverse Mortgage

• Eligibility: The assessee must be a senior citizen. Any amount received as a loan, whether in a lump sum or instalments, in a reverse mortgage transaction is exempt from taxation. This means that the loan amount does not count as income for the senior citizen, even though it is considered a capital receipt.

Section 80LA: Offshore Banking Units and International Financial Services Centre

• Maximum Deduction: 100% of income for the first five years, and 50% of income for the next five years.

• Eligibility: Income of units located in Special Economic Zones (SEZ) or International Financial Services Centre (IFSC).

Section 80PA: Producer Companies

• Maximum Deduction: 100% of profits for a period of five years.

• Eligibility: Eligible to producer companies having a total turnover of less than ₹100 crore in any financial year. This deduction applies to assessment years beginning on or after 1st April 2019 and before 1st April 2025.

Section 80JJAA: Employment of New Employees

• Maximum Deduction: 30% of additional employee cost for three years.

• Eligibility: Applicable to companies providing employment to new employees, subject to certain conditions.