Here are the deductions mentioned below which can help you save on tax. Many of you may not be aware that the Income Tax Department gives various benefits on personal expenses made by a person like heath checkups, for paying stamp duty for home. Gain knowledge by going through the complete article stating tax saving ways.
Let’s get started with the deductions starting from deduction under Section 80 C to Section 80U of the Income Tax Act.
Deduction under Section 80 C
Section 80 C |
Eligible Assessee | Individual Or HUF |
Eligible Investment | -PPF -EPF -LIC -Equity linked saving scheme -Premium amount for home loan -Stamp duty and registration charges for property -Sukanya Samriddhi Yojana -National Saving Certificate -Senior Citizen Saving Scheme -Unit Linked Insurance Plan -Tax Saving Fixed Deposit for 5 years -Infrastructure bonds |
Allowed Deduction | Up to Rs. 1,50,000 |
Deduction under Section 80 CCC
Section 80 CCC |
Eligible Assessee | Individuals |
Eligible Investment | Investment in Pension Funds |
Allowed Deduction | Up to Rs. 1,50,000 |
Deduction under Section 80CCD
Section 80 CCD |
Eligible Assessee | Individuals |
Eligible Investment | Atal Pension Yojana National Pension Scheme Contribution |
Allowed Deduction | Employee’s Contribution under Section 80 CCD (1). The maximum deduction allowed is least of the following -10% of salary (in case taxpayer is an employee) -20% of gross total income (in case of self-employed person) -Rs. 1,50,000 |
Deduction under Section 80CCD (1B)
Section 80 CCD (1B) |
Eligible Assessee | Individuals |
Eligible Investment | Atal Pension Yojana National Pension Scheme Contribution |
Allowed Deduction | Up to Rs. 50,000 |
Deduction under Section 80CCD (2)
Section 80 CCD (2) |
Eligible Assessee | Individuals |
Eligible Investment | National Pension Scheme Contribution by Employer |
Allowed Deduction | Amount Contributed or 14% of Basic Salary plus Dearness Allowance (in case the employer is CG), or Dearness Allowance (in case of any other employer) whichever is lower.
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Deduction under Section 80D
Section 80 D |
Eligible Assessee | Individuals Or HUF |
Eligible Investment | Medical Insurance Premium Medical Expenditure |
Allowed Deduction | Up to Rs. 1,00,000 |
Deduction under Section 80DD
Section 80 DD |
Eligible Assessee | Individuals Or HUF |
Eligible Investment | Medical Treatment of a dependent with disability |
Allowed Deduction | Normal Disability Rs. 75,000 Severe Disability Rs. 1,25,000 |
Deduction under Section 80 DDB
Section 80 DDB |
Eligible Assessee | Individuals Or HUF |
Eligible Investment | Specified Diseases |
Allowed Deduction | Senior Citizen:Up to Rs. 1,00,000 Others:Up to Rs. 40,000 |
Deduction under Section 80E
Section 80 E |
Eligible Assessee | Individuals |
Eligible Investment | Interest paid on loan taken for higher education |
Allowed Deduction | 100% of the interest paid up to 8 assessment years |
Deduction under Section 80EE
Section 80 EE |
Eligible Assessee | Individuals |
Eligible Investment | Interest paid on housing loan |
Allowed Deduction | Up to Rs. 50,000 subjects to some conditions |
Deduction under Section 80EEA
Section 80 EEA |
Eligible Assessee | Individuals |
Eligible Investment | Interest paid on housing loan |
Allowed Deduction | Up to Rs. 1,50,000 subject to some conditions |
Deduction under Section 80EEB
Section 80 EEB |
Eligible Assessee | Individuals |
Eligible Investment | Interest paid on electric vehicle loan |
Allowed Deduction | Up to Rs. 1,50,000 subject to some conditions |
Deduction under Section 80G
Section 80G |
Eligible Assessee | All assessee (individual, HUF, Company) |
Eligible Investment | Donation to charitable Institutions |
Allowed Deduction | 100% or 50% of the donated amount or qualifying limit OR Allowed deduction in cash up to Rs. 2000. |
Deduction under Section 80GG
Section 80GG |
Eligible Assessee | Individuals |
Eligible Investment | Income Tax Deduction on house rent paid |
Allowed Deduction | Rs. 60,000 25 % of total income OR Rent paid – 10% of total income whichever is lower. |
Deduction under Section 80GGA
Section 80GGA |
Eligible Assessee | All assesse except those who have an income or loss from business or profession |
Eligible Investment | Donation to scientific research & rural development |
Allowed Deduction | 100% of the amount donated. Allowed deduction in cash up to Rs. 10,000/- |
Deduction under Section 80GGB
Section 80GGB |
Eligible Assessee | All assesse except those who have an income or loss from business or profession |
Eligible Investment | Contribution to political parties |
Allowed Deduction | No deduction given where donation is made in cash |
Deduction under Section 80GGC
Section 80GGC |
Eligible Assessee | Individuals, HUFs, Association of Person (AOP), Body of Individual (BOI), Firm |
Eligible Investment | Individuals on contribution made to political parties |
Allowed Deduction | 100% of the amount contributed. No deduction shall be allowed if donation is made in cash. |
Deduction under Section 80IA
Section 80IA |
Eligible Assessee | Industrial undertakings engaged in specified businesses |
Eligible Investment | Profits and Gains from Industrial undertaking engaged in infrastructure development, etc. |
Allowed Deduction | 100% of the profit for 10 consecutive years out of 15 years beginning from year of commencement |
Deduction under Section 80IAB
Section 80IAB |
Eligible Assessee | SEZ Developers |
Eligible Investment | Profits and Gains to SEZ Developers |
Allowed Deduction | 100% of the profit for 10 consecutive years out of 15 years beginning from year in which SEZ has been notified by CG. |
Deduction under Section 80IAC
Section 80IAC |
Eligible Assessee | Company or Limited Liability Partnership (LLP) engaged in eligible business subject to some conditions |
Eligible Investment | Eligible startups |
Allowed Deduction | 100% of the profit for 3 consecutive years out of 7 years beginning from year of commencement. |
Deduction under Section 80IB
Section 80IB |
Eligible Assessee | Specified Industrial Undertaking |
Eligible Investment | Profits and Gains from certain industrial undertakings other than infrastructure development undertakings |
Allowed Deduction | 25%, 30% or 100% of the profit for such periods as such may be specified subject to certain conditions. |
Deduction under Section 80IBA
Section 80IBA |
Eligible Assessee | Individual, HUF, AOP, BOI, Company, Firm, any other person engaged in the business of housing projects |
Eligible Investment | Profits from Housing Projects |
Allowed Deduction | 100% of the profit |
Deduction under Section 80IC
Section 80IC |
Eligible Assessee | Certain Industrial Undertakings |
Eligible Investment | Certain undertakings in special category status |
Allowed Deduction | -Sikkim- 100% of profit for 10 years -Himachal Pradesh/ Uttaranchal- 100% of profit for first 5 years, 25% for next 5 years, 30% in case of companies -North Eastern States- 100% of the profit for 10 years. |
Deduction under Section 80ID
Section 80ID |
Eligible Assessee | Hotel or Convention Centre |
Eligible Investment | Profits and Gains of Hotels/ Convention Centers in specified areas. |
Allowed Deduction | 100% of the profit for 5 consecutive years beginning from the year of operation |
Deduction under Section 80IE
Section 80IE |
Eligible Assessee | Undertakings engaged in manufacture/ provision of specified goods/Services or undertake substantial expansion, in North Eastern States |
Eligible Investment | Certain undertakings in Northern Eastern States |
Allowed Deduction | 100% of the profit for 10 consecutive years beginning from the year of commencement of expansion as may be applicable. |
Deduction under Section 80JJA
Section 80JJA |
Eligible Assessee | Specified Business |
Eligible Investment | Profit and Gains of Specified Business |
Allowed Deduction | 100% of the profit for 5 consecutive years beginning from the year of commencement. |
Deduction under Section 80JJAA
Section 80JJAA |
Eligible Assessee | Employer who was subject to tax audit u/s 44AB |
Eligible Investment | Employment of New Employees |
Allowed Deduction | 30% of additional employee cost for 3 years including the year in which employment of provided. |
Deduction under Section 80LA
Section 80LA |
Eligible Assessee | Offshore Banking Units in SEZ or unit of IFSC |
Eligible Investment | Certain Income of Offshore Banking Units in SEZ and IFSC |
Allowed Deduction | -Offshore Banking Unit – 100% of the income for 5 consecutive years 50% of the income (for next 5 years) -IFSC – 100% of the income for 10 consecutive years out of 15 years beginning from the year in which permission is obtained |
Deduction under Section 80PA
Section 80PA |
Eligible Assessee | Producer Companies engaged in eligible business |
Eligible Investment | Certain Income of Producer Companies |
Allowed Deduction | 100% of the profit |
Deduction under Section 80RRB
Section 80RRB |
Eligible Assessee | Individuals (Indian Citizen or foreign citizen being residents in India) |
Eligible Investment | Royalty on Patents |
Allowed Deduction | Rs. 3,00,000 or Specified income whichever is lower |
Deduction under Section 80QQB
Section 80QQB |
Eligible Assessee | Individuals (Indian Citizen or foreign citizen being residents in India) |
Eligible Investment | Royalty Income of Authors |
Allowed Deduction | Rs. 3,00,000 or Specified income whichever is lower |
Deduction under Section 80TTA
Section 80TTA |
Eligible Assessee | Individuals earned on Savings Accounts |
Eligible Investment | Individual or HUF (except senior citizen) |
Allowed Deduction | Up to Rs. 10,000/- |
Deduction under Section 80TTB
Section 80TTB |
Eligible Assessee | Interest income earned on deposits (Savings/FDs) |
Eligible Investment | Individual (60 years or above) |
Allowed Deduction | Up to Rs. 50,000/- |
Deduction under Section 80U
Section 80U |
Eligible Assessee | Individuals |
Eligible Investment | Disabled Individuals |
Allowed Deduction | Normal Disability: Rs. 75,000/- Severe Disability: Rs. 1,25,000/- |
All in all, you can claim the deduction as mentioned above in various sections which also helps in reducing the tax payable resulting in a reduction ofthe gross total income.
So, if you are an eligible taxpayer then, here is everything you must know about. While filing your Income Tax Returns, their deductions need to be claimed. In order to claim it, Contact EAdvisors and file your Income Tax Return and avail the benefit of deductions.