Deduction in respect of payments:-
| Section | Eligible Assessee | Payments | Deduction |
|---|---|---|---|
| 80C | Individual or HUF | 1. Life insurance premium Contribution. [Life insurance + Endowment policy] 2. Contribution to SPF/RPF/PPF/Superannuation fund. 3. Repayment of housing loan. 4. Term deposit [FD] 5. Notified bonds of NABARD. 6. Senior Citizen’s Saving Scheme Account. 7. Tuition fees. 8. Contribution by CG employee to [Tier-II] A/c of NPS referred to u/s 80CCD. | Sum paid or deposited -maximum of Rs. 1,50,000 |
| 80CCC | Individual | Contribution to certain pension funds Amount paid or deposited to keep in force a contract for any annuity plan of LIC or any other insurer for receiving pension from the fund. | Amount paid or deposited- maximum of Rs. 1,50000 |
| 80 CCD | Individual | Any individual employed by the Central Government on or after the 1st day of January, 2004 or any other assessee, paid or deposited any amount in his a/c under a pension scheme [Tier-I A/c – NPS and Atal Pension]. | Employee’s contribution/Individual’s contribution 1. In case of a salaried individual having own contribution is restricted to 10% of his salary [Basic + DA [If] under section 80CCD(1). 2. In any other case 20% of gross total income under section 80CCD(1). 3. Additional deduction of upto Rs. 50,000 under section 80CCD(1B). Employer’s contribution under section 80CCD(2):- In case of CG/SG, contribution is restricted to 14% In case of any other employer, contribution is restricted to 10% |
| 80CCE | . | Maximum deduction u/s 80C, 80CCC and CCD(1) is Rs. 1,50,000 Section 80CCE doesn’t apply to deduction u/s 80CCD(1B) and 80CCD(2). | |
| 80D | Individual or HUF | Medical Insurance Premia Any amount paid, otherwise than by way of cash, to keep in force an insurance on the health of: – In case of an individual:- Self and family [spouse and dependent children] Parents In case of HUF:- Family member Contribution, otherwise than by way of cash, to CGHS or other scheme notified by CG or payment on account of Preventive health check-up [Maximum deduction-Rs. 5000, subject to the overall limit of Rs. 25,000/50,000] Note- Cash payment for preventive health check-up is allowed. Important Note: – if any amount paid, otherwise than by way of cash, on account of medical expenditure on the health of the assessee or spouse, dependent children or parents who is senior citizen and no amount has been paid to effect or to keep in force an insurance on the health | Maximum Rs. 25,000 In case the individual or spouse is a senior citizen, the maximum limit is Rs. 50,000 Total deduction cannot exceed Rs. 50,000 |
Deduction in respect of payments:-
| Section | Eligible Assessee | Payments | Deduction |
|---|---|---|---|
| 80DD | Resident Individual or HUF | Maintenance including medical treatment of a disabled dependant Any amount incurred for the medical treatment (including nursing), training and rehabilitation of a dependant or Any amount paid or deposited under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company and approved by the Board. Dependent means: – In the case of: – An individual– Spouse, children, parents, brothers and sisters A HUF– Member | Flat deduction of Rs. 75,000 Flat deduction of Rs. 1,25,000 [in case of severe disability [person with 80% or more disability. |
| 80DDB | Resident Individual or HUF | Medical treatment of specified diseases or ailments Amount paid for the medical treatment for specified disease or ailment In the case of: – An individual– Self, spouse, children, parents, brothers and sisters wholly and mainly dependent for support and maintenance. A HUF–Member | Actual amount paid or Rs. 40,000 [Rs. 1,00,000 for senior citizen] Whichever is less Minus Amount received from the insurance company or reimbursed by the employer. |
| 80E | Individual | Interest on loan taken for higher education Interest on loan taken from any financial institution or approved charitable institution for the purpose of pursuing his higher education or relative Relative [spouse, children or the student for whom the individual is legal guardian]. Higher education- [after passing the Senior Secondary Examination or its equivalent] | Deduction is allowed for interest in the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier. |
| 80EEB | Individual | Interest on loan taken from any financial institution for purchase of electric vehicle. | Upto Rs. 1,50,000 Note- Loan has been sanctioned by financial institution during the period from 01.04.209 to 3.03.2023 |
Section 80G
| 80G | All Assessees | Donation to certain funds, charitable institution etc. There are 4 categories of deductions: – Category Donee 100% without qualifying limit 1. Prime Minister’s National Relief Fund. 2. National Childre’s Fund. 3. Swachh Bharat Kosh 4. PM CARES Fund 5. National Defence Fund etc. 100% with limit Government or local authority, institution for promotion of family planning etc. 50% without qualifying limit 1. Prime Minister’s Drought Relief Fund. 2. Jawaharlal Nehru Memorial Fund. 3. Indira Gandhi Memorial Trust. 4. Rajeev Gandhi Foundation. 50 % with limit Government or any local authority to be used for charitable purpose other than promotion of family planning, notified temple, church, gurudwara, Mosque etc. Calculation of qualifying limit: – Steps: – 1. Computed adjusted total income GTI – Deductions under Chapter VIA except section 80G Short capital gains under section 111A Long term capital gains under section 112 and 112A 2. Calculate 10% of adjusted total income 3. Actual donation subject to qualifying limit 4. Lower of step 2 and 3 is the maximum permissible deduction. 5. Deduction is adjusted first against donation qualifying for 100% deduction thereafter 50% of balances qualifies for deduction under this section 80G. Note: – No deduction is allowed if it is paid in cash in excess Rs. 2,000 |
| Section | Eligible Assessee | Payments | Deduction |
|---|---|---|---|
| 80GG | Individual who doesn’t receive HRA | Rent paid for own residential accommodation [furnished or unfurnished] | Least of the following is deductible: – 1. Rs. 5,000 per month 2. Rent paid minus 10% of total income 3. 25% of total income Note: – No deduction is available, If any residential accommodation is owned by the assessee/his spouse/minor child/family [HUF] at the place where he ordinarily resides or perform the duties of his office or employment or carries on his business or profession. |
| 80GGC | Any Person [except local authority and artificial juridical person juridical person funded by Government] | Contribution to political parties/electoral trust | Amount of contribution Note: – No deduction if contribution by way of cash |
| 80QQB | Resident individual | Royalty income etc. of authors of certain books other than text-books | Least of the following is deductible: – 1. Income derived in the exercise of his profession Or 2. Rs. 3,00,000 |
| 80RRB | Resident individual | Royalty on patents | Royalty income or Rs. 3,00,000 whichever is lower. |
Deduction in respect of Income
| Section | Eligible assessee | Income | Deduction |
|---|---|---|---|
| 80TTA | Individual or HUF [Resident senior citizen] | Interest on deposits in saving account Saving account with a bank, co- operative society [engaged in banking business] or a Post Office Note: – not being time deposits | Actual interest or Rs. 10,000 Whichever is less |
| 80TTB | Resident senior citizen | Interest on deposits [Fixed deposits and saving account] Interest on deposits with a bank, co-operative society [engaged in banking business] or a Post Office | Actual interest or Rs. 50,000 Whichever is less |
| 80U | Resident individual | Person with disability | Flat deduction of Rs. 75,000 Flat deduction of Rs. 1,25,000 [in case of severe disability [person with 80% or more disability] |