Tax Deductions available under section 80 of Income Tax Act, 1961

Section 80C (Individual & HUF) : - In all, total deductions under section 80C, 80CCC and 80CCD (1) cannot exceed Rs 1.50 lakh for the current assessment year. Which means total investments, expenses, and payments up to a limit of Rs 1.50 lakh are eligible for tax deductions mentioned in the above-mentioned sections. These sections cover many savings schemes like National savings certificates (NSCs), Public Provident Fund (PPF) and other pension plans, life insurance premiums, government bond investments. Here’s a section-wise breakup of deductions and exemptions available under the above-mentioned codes:

Section 80CCC (Individual): - This section provides tax deductions for any investments made in an annuity plan or Life Insurance Corporation (LIC) or pension received under funds mentioned in Section 10(23AAB).

Section 80CCD (1) (Individual): - The deductions under this section are aimed at encouraging people to save. These deductions are allowed to people who avail the National Pensions savings scheme (NPS). Under this, an individual can avail a deduction of up to 10 percent of his/her salary or Rs 1.50 lakh whichever is lower if the person has employed or the lower of Rs 1.50 lakhs or 10 percent of gross income, if the individual is self-employed.

Download Automated Master of Form 16 Part B which can prepare at a time 100 Employees Form 16 Part B for F.Y.2016-17 


Download Automated Master of Form 16 Part B which can prepare at a time 50 Employees Form 16 Part B for F.Y.2016-17

 Section 80CCD (2) (Individual): - This is applicable in the case of employer’s contribution. The maximum deduction of 10% of salary.

Section 80CCD (1B) (Individual): -For the financial year 2015-16 or assessment year 2016-17, this new section provides for an additional tax deduction for the amount contributed to NPS of up to Rs 50,000. So for AY2016-17, total deductions under Section 80 are available up to Rs 200,000.

Section 80D (Individual & HUF): - Deduction up to Rs.25,000 for self, spouse, and dependent children and separate deduction of Rs.30,000 for parents is allowed for the premium paid towards medical insurance.

Section 80DD (Individual & HUF): -Deduction of expenses incurred on medical treatment of Dependent Relative is fixed at   Rs.75,000 for 40% disability and Rs.1,25,000 for severe i.e. 80% disability. Claimant is required to furnish a certificate of disability from prescribed authority.

Section 80DDB (Individual & HUF): -Deduction in respect of specified disease for self or dependent relatives is allowed lower of Rs.60,000 or the actual amount paid. This deduction amount increases to Rs.80,000 in the case of the senior citizen.

Section 80E (Individual): -Deduction is also available on interest outgo on education loan for higher studies. This loan could be taken by the assessee, spouse or children or a student for whom the assessee is a legal guardian.

Section 80G (All Assessee): -Donations given to various specified institutions and organizations are allowed to be deducted from your income. The deductions are segregated into two categories i.e. 100% or 50% but cash donations exceeding Rs.10,000 is not allowed to claim.

Section 80GG (Individual): - A deduction on house rent paid is available to those who are not paid house rent allowance (HRA) by the employer. An individual, spouse or minor children shouldn’t own a home at the place of employment of the assessee to claim this deduction.  Neither the assessee should have a self-occupied residence at any other place. The deduction available is limited to rent minus 10% of total income or 25% of total income or Rs 2000 (whichever is lower).

Section 80TTA (Individual & HUF): - Any interest earned (up to Rs 10,000) on your deposits in a savings bank account, co-operative society or post office is tax deductible.  This excludes fixed deposit interest income.

Section 80U (Individual & HUF) : - Physically Disabled persons can claim deductions under 80U of Rs.1,00,000. The assessee is required to obtain a certificate from Government Doctor.

Section 87A (Individual & HUF) :- Tax Rebate Rs. 5,000/- from the Financial Year 2016-17