Everyone knows that Section 80C offers a maximum deduction of up to Rs. 1,50,000
A few of the options are as follows:
• Public Provident Fund
• Life Insurance Premium
• Tuition fees paid for children’s education, up to a maximum of 2 children
• House Loan Principle amount
• 5 year fixed deposits with banks and post office
• National Pension Scheme
• Employee Provident Fund
• National Saving Certificates and deposit in Sukanya Samriddhi Account
• Unit Linked Insurance Plans
• Notified units of mutual fund or UTI
• Subscription to any notified bonds of NABARD
• Five Year time deposit scheme in post office
• Amount deposited under Senior Citizens Saving scheme
Deduction in respect of contribution to Pension Fund - Section 80CCC
A deduction to an individual for any amount deposited by him in annuity plan of life Insurance Corporation of India or any other insurer for receiving pension from the fund. The deduction is maximum Rs 1,50,000.
Contribution to pension scheme notified by Central Government - Section 80CCD
The contributions can be up to 10% of the salary or Gross total Income and additional tax benefit of Rs 50,000 u/s 80CCD (1b).
The employee has to contribute to Government Recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross total income is applicable for non-salaried.
Note: Total deduction under 80C, 80CCC, 80CCD (1) together cannot exceed 1,50,000 for the financial year. Deduction of Rs 50,000 under sec 80CCD (1b) is over and above Rs 1,50,000.
Medical Insurance premium - Section 80D
Deduction under section 80D on Health Insurance Premium for Individuals/HUF is Rs 25,000 and for senior citizens it is Rs 30,000.Preventive health checks up expenses to the extent of Rs 5,000/- can be claimed as tax deductions.
Self, spouse and Dependent Children
Parent (Dependent or not)
|Upto 60 years||Up to Rs 25,000||Up to Rs 25,000||Rs 50,000|
Less than 60 years age
for other & More than 60 years age for parents
|Up to Rs 25,000||Up to Rs 30,000||Rs 55,000|
than 60 Years age for other & More than 60 years age for parents
to Rs 30,000||Up
to Rs 30,000||Rs 60,000|
Maintenance Including Medical Treatment of handicapped dependent - Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) that have 40% disability. The tax deduction limit of up to Rs 1,25,000 lakh in case of severe disability can be availed.
Medical Treatment - Section 80DDB
An individual (less than 60 years of age) can claim up to Rs 40,000 for the treatment of specified critical ailments. This can be claimed on behalf of the dependent and the tax deduction limit under this section for Senior Citizens is Rs 60,000 and for every Senior Citizen (more than 80 years of age) the limit is Rs 80,000.
To claim deductions under Section 80DDB, it is mandatory to obtain Doctor Certificate or Prescription from a specialist working in a Government hospital or Private hospital.
Interest on loan taken for higher education – Section 80E
Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education is allowed as deduction for Maximum period of 8 Yr’s
Interest on Loan taken for Residential House property – 80EE
The following conditions should be fulfilled
• Assessee has taken loan for Residential house property
• Loan taken from bank or Housing finance company
• Loan sanctioned between 01-04-2013 to 31-03-2014
• Loan amount does not exceed 25 Lakhs
• House property value does not exceed Rs 40 Lakhs
Amount of deduction is Maximum of Rs 50,000.
Rent Paid – Section 80GG
The Tax Deduction amount under Section 80GG is Rs 60,000PA from financial year 2016-17. Section 80GG is applicable for all those individuals who do not own a residential house and do not receive House Rent Allowance.
Tax deduction will be limited to the least of the following
• Rent paid minus 10 percent the adjusted total income.
• Rs 5,000 per month.
• 25 % of the total income.
Interest on Deposits in savings accounts – Section 80TTA
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000 in respect of
interest on deposits in savings account with a bank can be claimed under this section.
A person with disability – Section 80U
You can claim up to Rs 75,000 for spending on medical treatments that have 40% disability. The tax deduction limit of up to Rs 1,25,000 lakh in case of severe disability can be availed.
Rebate under - Section 87A
Tax rebate in case of individual resident in India, whose total income does not exceed five lakh quantum of rebate shall be an amount equal to hundred per cent of such income-tax or an amount of five thousand rupees, whichever is less.