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Every Taxpayer is aware about deductions under Section 80C for saving their tax liability. As this financial year is going to end soon lets discuss about Deductions under Income Tax Act, 1961 so that you can reduce your tax burden.

Deduction under Chapter VI A of Income tax Act,1961

(Maximum Deduction Rs. 150,000: 80C + 80CCC + 80CCD) 80C

1. Life insurance premium for policy:  in case of individual, on life of assessee, assessee's spouse and any child of assessee - in case of HUF, on life of any member of the HUF

2. Contributions by an individual made under Employees' Provident Fund Scheme

3. Contribution to Public Provident Fund Account in the name of: - in case of individual, such individual or his spouse or any child of such individual - in case of HUF, any member of HUF

4. Contribution by an employee to a recognized provident fund

5. 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 21.01.2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction

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

7. 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

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

9. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme11 framed and notified.

10. Subscription to notified bonds issued by the NABARD.

11. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions) 80 CCC Contributions to certain pension funds of LIC or any other insurer 80 CCD Contribution to pension scheme notified by Central Government up to 10% of salary Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 10% of salary of the employee - 80D Section 80D will help you in getting tax deductions on medical insurance premiums only.

The deductions allowed are as follows:

Payment made in cash will not be eligible for deduction.

For Self and Family: Maximum deduction of Rs.25,000 per year on health insurance premium for self and family. Maximum deduction of Rs.30,000 per year if you are a senior citizen.

For Parents: Maximum deduction of Rs.25,000 per year on health insurance premium paid on behalf of parents. Maximum deduction of Rs.30,000 per year on premium payments for senior citizen parents.

Additional Deduction: A deduction of Rs.5,000 can be claimed every year on expenses related to health check-ups. This limit includes the check-up expenses of all members in a family, including spouse, kids and parents.

80GG Individuals not receiving any house rent allowance: Rent paid in excess of 10% of total income for furnished/unfurnished residential accommodation (subject to maximum of Rs. 5,000 p.m. or 25% of total income, whichever is less)

80 TTA Individuals/HUFs: Interest on deposits in savings bank accounts (up to Rs. 10,000 per year)

If assesses is having income from house property then he can also take further deductions under section:

a. 23(1) Taxes levied by local authority and borne by owner if paid in relevant previous year
b. 24(a) Standard deduction [30% of the annual value (gross annual value less municipal taxes)]
c. 24(b) Interest on borrowed capital (Rs. 30,000/Rs. 2,00,000, subject to specified conditions)

There are deductions for Business income, Capital Gains and income from other sources which will be discussed later in detail in other article.

Please note all deductions of Chapter VIA is not discussed in this article because they are not general deductions which is applicable to all. 


Published by

Danish Jain
(Tax Adviser)
Category Income Tax   Report

7 Likes   12 Shares   8847 Views


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