As the tax filing season slips in, every taxpayer shell out to look for all possible ways to reduce his tax levy. Out of the minimum tax slab exemption, the short deviations provided by the government in the form of deductions under multiple tax sections also work in reducing taxable income to a great extent.
The Income-tax Act Section 80 allows you to claim deductions on your money spent on medical expenses, insurance investments, charity payments, and retirement benefits. These deductions have been allowed to stimulate the society for reinvestment of funds to better income avenues and bring better life expectancy in the economy.
Much of these tax deductions qualify exemptions from our day-to-day expenses, knowledge of which is essential for tax saving. In this article, we will highlight all the basic deductions available to every taxpayer while filing an Online Income Tax Return under the most prized section of the Income-tax Act – Section 80 by CA Services in Delhi.
Here’s a synopsis of the Tax deductions available in the Income Tax Act Section 80.
| Section | Deduction | Maximum Deduction Amount | Eligible Taxpayer |
| 80C | For Investment made in LIC Policy (for wife, children or self), payments made towards PF, Tuition fees paid, payments for construction or purchase of a residential property, fixed deposits made for a minimum of 5years. | Upto Rs 1.5 lakh , in aggregate of 80CCC, 80CCD and 80C. | Individual/HUFs |
| 80CCC | Tax rebates for the investment made in pension funds | Upto Rs 1.5 lakh , in aggregate of 80CCC,80CCD and 80C. | Individuals |
| 80CCD | For investments made in pension funds issued by Central Government (eligible for both contributions made by employee and employer) | Upto Rs 1.5 lakh , in aggregate of 80CCC, 80CCD and 80C. | Individuals |
| 80CCF | For investments made in long term infrastructural bonds | Upto Rs 20,000 | Individual and HUFs |
| 80CCG | For investments made in equity saving schemes specified by the government | Upto Rs 25,000 | Individuals |
| 80D | For claiming against payments made towards health insurance premium paid for self, wife children or parents or investment made in any tax saving health plan specified by the government | Upto Rs 25,000 for self, spouse, or children and additional Rs 25,000 if paid for parents ( below 60 yrs of age) i.e. Rs 50,000 total
Upto Rs 30,000 for Parents (over 60 years age). This limit has been increased to Rs 50000 from F.Y. 2018-19 onwards. |
Individuals/HUFs |
| 80DD | For payment made towards treatment for disability or purchase of a health insurance plan for self or dependents. | Upto Rs 75000 in case of Disability &
Upto a maximum of Rs 1.25 lakh in case of severe disability |
Individual and HUF |
| 80DDB | For payment made towards medical treatment of a critical disease. | Upto Rs 40,000 for self or family
Upto Rs 60,000 if paid for seniors above 60 years. |
Individual and HUF |
| 80E | For payment of interest towards premium on loan taken for higher education | No specified limit | Individual |
| 80EE | For payment of interest as paid on premium on loan taken for purchase of a residential property (Loan value uptoRs 35 lacs and Property vaueuptoRs 50 lacs). Also no other house is owned by asseessee on date of sanction of loan. | Upto Rs 50,000 | Individuals |
| 80G | For payment made as wilful donations made towards charitable institutions | No specific limit (100% or 50% depending on type of donation) | All assessees |
| 80GG | For payment made towards rent payable for hiring house for accommodation, to be availed on non-receipt of house rent allowance | Upto a maximum of Rs5,000 per month or 25% of total income whichever is less. | Individuals |
| 80GGA | For payment made as donations towards a National Poverty Eradication fund or any other institution as specified, provided that assessee shall not be in receipt of income from any profession or business. | No specific limit. Donation above Rs 10,000 shall be made through banking channels for claiming deduction. | All assessee |
| 80GGB | For payment made towards political parties or electoral trusts | No specific limt.
Donation in cash not eligible for deduction. |
Indian Companies |
| 80GGC | For payment made towards political parties or electoral trusts excluding contributions from Artificial judicial person and local authorities. | No specific limt.
Donation in cash not eligible for deduction. |
All assessee |
| 80IA | On gains received by enterprises from industrial activities for instance gains on power generation, SEZs, Industrial parks etc. | Upto a maximum of 100% of profit for not more than 10 consecutive years. | All assessee |
| 80IAB | On gains generated by SEZs | Upto a maximum of 100% of profit for not more than 10 consecutive years. | All assessee (SEZs owners) |
| 80IB | On gains received from ships, theatres, hotels ,multiplex,cold storage, scientific research and development etc | No specific limit | All assessee |
| 80IC | For gains received from states falling under special category including Mizoram,HP,Tripura,Uttraranchal,Arunachalpradesh,Manipuretc | No specific limit | All assessee |
| 80ID | For gains received from convention centres and hotels. | Upto a maximum of 100% of profit for not more than 5 consecutive years. | All assessee |
| 80IE | For investments made in projects in North eastern India.
|
Upto a maximum of 100% of profit for not more than 10 consecutive years. | All assessee |
| 80JJA | For gains and profits received from business of biological products – biogas, bio-fertilizers etc | Upto a maximum of 100% of profit for not more than 5 consecutive years. | All assessee |
| 80JJAA | For gains or profits received for manufacturing of goods in factories by Indian companies and employees who have drawn salary for more than 240 days working on contract with such industries excluding workers at administrative and managerial posts | 30% of additional employee cost for 3 assessment years | Indian Companies |
| 80LA | Available for entities including Scheduled Banks , International Financial Service Centres having off shore banking units in SEZs and banks setup abroad | Upto a maximum of 100% of Income for 5 consecutive years&
50% of income for next 5 consecutive years. |
Banks entities |
| 80P | available to cooperative societies
i) For societies engaged in fishery, agriculture , cottage and milk industry . ii) For other work purposes iii) For income received on renting warehouses iv) For income received on interest on loans provided to other societies. v) For income received as interest for the investment made in securities or property. |
Upto 100% for (I) category societies.
From Rs 50,000 to Rs 1 lakh for other category socities. |
Cooperative Societies |
| 80 QQB | For royalty received on sale of books related to scientific, artistic and literary, eligible for deduction excluding journals, textbooks and diaries etc | Upto a maxium of Rs 3 lakh | Individuals (Authors) |
| 80RRB | For income received as royalty for issuing patent rights | Upto a maximum of Rs 3 lakh. | Individuals |
| 80TTA | For interest income received on bank deposits | Upto a maximum of Rs 10,000 | HUFs/Individuals |
| 80U | To be claimed by a person with disability as specified . | Upto Rs 75000 in case of Disability &
Upto a maximum of Rs 1.25 lakh in case of severe disability |
Individuals |
There are unexpectedly many possible ways to save your taxes with the above deductions provided by the government.
If you still find it difficult to match the applicability of the above deductions you can contact our tax expert for Online Income Tax Return Services in Delhi or any part of India at any time by emailing us at support@taxgoal.in or calling at +919899693838. Visit Taxgoal.in
