October 20, 2020

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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 HUF
2.                         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 if
 specified 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 and
sisters 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 31st 
March 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 capital
gains 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 subject 
to 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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