Under section 80C, a deduction of Rs. 1,50,000 can be claimed from your total income. In simple terms, you can reduce up to Rs. 1,50,000 from your total taxable income through section 80C. This deduction is allowed to an Individual or a HUF. A maximum of Rs 1, 50,000 can be claimed for the FY 2018-19, 2017-18 and 2016-17 each.

 

1. Section 80CCC – Insurance Premium

 

Section 80CCC provides a deduction to an individual for any amount paid or deposited in any annuity plan of LIC or any other insurer. Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.

 

2. Section 80CCD – Pension Contribution

 

1.  Deduction for self-contribution to NPS – section 80CCD (1B)

 

A new section 80CCD (1B) has been introduced for an additional deduction of up to Rs50, 000 for the amount deposited by a taxpayer to their NPS account.

 

2. Employer’s contribution to NPS – Section 80CCD (2)

 

Additional deduction is allowed for employer’s contribution to employee’s pension account of up to 10% of the salary of the employee.

 

3. Section 80 TTA – Interest on Savings Account

 

A deduction of maximum Rs10,000, can be claimed against interest income from a savings bank account. Interest from savings bank account should be first included in other income and deduction can be claimed of the total interest earned or Rs10,000, whichever is less. This deduction is allowed to an individual or an HUF. It can be claimed for interest on deposits in savings account with a bank, co-operative society, or post office. Section 80TTA deduction is not available on interest income from fixed deposits, recurring deposits, or interest income from corporate bonds.

 

4. Section 80E – Interest on Education Loan Deduction for Interest on Education Loan for Higher Studies

 

A deduction is allowed to an individual for interest on loan taken for pursuing higher education. This loan may have been taken for the taxpayer, spouse or children or for a student for whom the taxpayer is a legal guardian. 80E deduction is available for a maximum of 8 years or till the entire interest is repaid, whichever is earlier.

 

5. Section 80EE – Interest on Home Loan

 

This deduction is available in FY 2017-18 if the loan has been taken in FY 2016-17. The deduction under this section 80EE is available only to an individual who is a first time home-owner. The value of the property purchased must be less than Rs 50 lakh and the home loan must be less than Rs 35 lakh.

 

Through this section, an additional deduction of Rs 50,000 can be claimed on home loan interest. This is in addition to deduction of Rs 2,00,000 allowed under section 24 of the Income Tax Act for a self-occupied house property.

 

6. Section 80D – Medical Insurance

 

Deduction for the Premium Paid for Medical Insurance

 

Deduction under this section 80D is available to an individual or a HUF. A deduction of Rs. 25,000 can be claimed for insurance of self, spouse and dependent children. An additional deduction for insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age or Rs 50,000 (has been increased in Budget 2018 from Rs 30,000) if parents are more than 60 years old. In case, a taxpayers age and parents age is 60 years or above, the maximum deduction available under this section is to the extent.

 

 

7. Section 80DDB – Medical Expenditure

 

Deduction for Medical Expenditure on Self or Dependent Relative

 

This deduction is available to a resident individual or a HUF. The deduction that can be claimed is Rs 40,000. Such deduction, for an individual, is available in respect of any expenses incurred towards treatment of certain specified medical diseases or ailments for himself or any of his dependents. For a HUF, such deduction is available in respect of medical expenses incurred towards these prescribed ailments, for any of the members of the HUF.

 

 

8. Section 80U – Physical Disability

 

Deduction for Person Suffering from Physical Disability

 

A deduction of Rs. 75,000 is available to a resident individual who suffers from a physical disability (including blindness) or mental retardation. In case of severe disability, deduction of Rs.1, 25, 000 can be claimed. From FY 2015-16, Section 80U deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs1, 00, 000 has been raised to Rs 1,25,000.

 

9. Section 80G – Donations

 

The various donations specified in u/s 80G  are eligible for deduction up to either 100% or 50% with or without restriction as provided in section 80G. From FY 2017-18, any donations made in cash exceeding Rs 2,000 will not be allowed as deduction. The donations above Rs. 2000 should be made in any mode other than cash to qualify as deduction u/s 80G.

 

10. Section 80GGB – Company Contribution

 

Section 80GGB Deduction is allowed to an Indian company for the amount contributed by it to any political party or an electoral trust. Deduction is allowed for contribution done by any way other than cash.

 

11. Section 80GGC – Contribution to Political Parties

 

Deduction under this section 80GGC is allowed to a taxpayer except for a company, local authority and an artificial juridical person wholly or partly funded by the government, for any amount contributed to any political party or an electoral trust.

 

12. Section 80 TTB – Interest Income

 

A new section 80TTB  has been inserted vide Budget 2018 wherein, a deduction in respect of interest income from deposits held by senior citizens will be allowed as a deduction from the total income The limit for this deduction is Rs. 50,000. Further, no deduction under section 80TTA shall be allowed.

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