There are numerous deductions a taxpayer can demand from his aggregate salary which would cut down his assessable wage and in this way decrease his tax expenditure. Talked about in this article are a portion of the essential findings under Section 80C a taxpayer is qualified to demand.
1. Section 80C
Omission on investments
Under section 80C, an omission of 1,50,000 Rupees can be asserted from your entire payment. It simply means that you can lessen up to 1,50,000 Rupees from your entire taxable payment by section 80C. This omission is permitted to an Individual or a HUF. A highest of 1, 50,000 Rupees can be asserted for the FY 2018-19, 2017-18 and FY 2016-17 each.
If you have paid overabundance government expenses, yet have put resources into LIC, PPF, Mediclaim, caused towards educational cost charges and so forth and have missed guaranteeing an omission of the same under 80C, then you can document your Income Tax Return, guarantee these derivations and get a discount of abundance charges paid.
2. Section 80CCC
Omission for Premium Paid for Annuity Plan of LIC or Other Insurer
This segment gives an omission to a person for any sum paid or saved in any annuity plan of LIC or any other back up plan. The arrangement must be for getting an annuity from a fund mentioned to in Section 10(23AAB). Benefits got from the annuity or sum endless supply of the annuity, including interest or reward collected on the annuity, is assessable in the time of receipt.
Omission for contribution to pension account-
- Employee’s contribution –Section 80CCD (1) is allowed to an individual who makes deposits to his/her pension account. Maximum deduction allowed is 10% of salary (in case the taxpayer is an employee) or 20% of gross total income (in case the taxpayer being self-employed) or 1, 50,000 Rupees, whichever is less.
FY 2016-17 and earlier years – In the case of a self-employed individual, maximum income tax 2016-17 allowed is 10% of gross full income.
- Omission for self-contribution to NPS – Section 80CCD (1B) another segment 80CCD (1B) has been presented for an extra derivation of up to Rs 50,000 for the sum kept by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are likewise qualified.
- Contribution of employer to NPS- Section 80CCD (2) Additional omission is took into account manager’s commitment to employee’s annuity record of up to 10% of the compensation of the employee. There is no financial roof on this derivation.
4. Section 80 TTA
Omission from gross Total Income for Interest on Savings Bank Account
An omission of most extreme 10,000 Rupees can be asserted against premium pay from an investment bank account. Interest from reserve funds financial balance ought to be previously incorporated into other pay and omission can be asserted of the aggregate premium earned or Rs 10,000, whichever is less. This conclusion is permitted to an individual or a HUF. It very well may be guaranteed for interest on savings in investment account with a bank, co-agent society, or mail station. Section 80TTA omission isn’t accessible on intrigue pay from fixed deposits, repeating deposits or interest earning from corporate securities.
5. Section 80GG
Omission for house rent paid in case HRA is not received
- This omission is accessible for lease paid when HRA isn’t gotten. The taxpayer, partner or minor kid must not possess private convenience at the work place.
- The taxpayer must not have self-possessed private property in some other place.
- The taxpayer should live on rent and pay rent.
- The omission is available to everyone.
Omission available is the nominal of the following:
- Rent paid debt 10% of fixed total earning.
- 5,000 Rupees per month.
- 25% of fixed total earning*.
* Balanced gross total earning is arrived at in the wake of modifying the gross total income for specific derivations, absolved livelihoods, long haul capital additions and pay identifying with non-inhabitants and outside organizations. An online e-recording programming like that of ClearTax can be greatly simple as the breaking points are auto-ascertained and you don’t need to stress over making complex estimations. From FY 2016-17 accessible omissions have been raised to 5,000 Rupees multi month from 2,000 Rupees every month.
Omission for interest on education loan for higher studies
An omission is permitted to a person for interest on credit taken for seeking after advanced education. This credit may have been taken for the taxpayer, partner or kid or for a student for whom the taxpayer is a lawful guardian. The omission is accessible for a greatest of 8 years (starting the year in which the interest begins getting reimbursed) or till the whole interest is reimbursed, whichever is prior. There is no limitation on the sum that can be guaranteed.
7. Section 80EE
Omission on home loan interest for first time home owners
FY 2017-18 and FY 2016-17 income tax deductions for ay 2017 18 in FY 2017-18 if the credit has been taken in FY 2016-17 and tax exemption 2017. The omission under this section is accessible just to a person who is a first time home owner. The estimation of the property obtained must be not as much as 50 lakhs Rupees and the home advance must be not as much as 35 lakhs Rupees. For income tax deductions for ay 2017 18, the advance must be taken from a monetary organization and more likely than not been authorized between 1st April 2016- 31st March 2017. Through this section, an extra omission of 50,000 Rupees can be asserted on home credit interest. This is in addition to omission of 2,00,000 Rupees permitted under section 24 of the income tax Act for a self-involved house property.
FY 2013-14 and FY 2014-15 This section gives a finding on the home advance interest paid. The omission under this section is accessible just to people for the main house obtained where the estimation of the house is 40 lakhs Rupees or less and the credit taken for the house is 25 lakhs Rupees or less. The credit must be authorized between 1st April 2013- 31st March 2014. The total finding permitted under this section can’t surpass 1,00,000 Rupees and is took into account FY 2013-14 and FY 2014-15.
8. Section 80CCG
Rajiv Gandhi Equity Saving Scheme (RGESS)
The omission under this area is accessible to a resident person. Financial specialists’ gross total earning is not needed as much as 12 lakhs Rupees. To profit the advantages under this section the accompanying conditions must to be met:
- The assesse must be another retail speculator according to the necessity determined under the informed plan.
- The speculation must be made in such recorded financial specialist according to the necessity determined under the told plot.
- The base secure period in regard of such venture is three years from the date of procurement as per the told conspire.
Endless supply of the above conditions, an omission, which is lower of the accompanying, is permitted. Half of the sum put resources into value shares; or 25,000 Rupees for three back to back Assessment Years.
Rajiv Gandhi Equity Scheme has been suspended beginning from 1 April 2017. Hence, no conclusion under area 80CCG will be permitted from FY 2017-18. In any case, in the event that you have put resources into the RGESS conspire in FY 2016-17, at that point you can guarantee conclusion under Section 80CCG until FY 2018-19.
9. Section 80D
Omission for the premium paid for medical insurance
Omission under section 80D is accessible to an individual or a HUF. An omission of 25,000 Rupees can be guaranteed for protection of self, spouse and dependent kids. An extra finding for protection of guardians is accessible to the degree of 25,000 Rupees on the off chance that they are under 60 years old or 50,000 Rupees (has been expanded in Budget 2018 from 30,000 Rupees) if guardians are over 60 years of age. According to section 80D, in the event that, a taxpayer’s age and guardian’s age is 60 years or over, the most extreme omission accessible under this section is to the degree of 100,000 Rupees. Model: Atul’s age is 65 and his dad’s age is 90. For this situation, the greatest omission Atul can guarantee under section 80D is 100,000 Rupees. From FY 2015-16 a combined extra omission of 5,000 Rupees is taken into consideration the preventive well-being check up to people.
10. Section 80DD
Omission for rehabilitation of disabled dependent relative
From section 80DD it goes like this that the deduction is available to a resident individual or a HUF and is available on:
- Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependent relative
- Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
- Where disability is 40% or more but less than 80% – fixed omission of 75,000 Rupees.
- Where there is severe disability (disability is 80% or more) – fixed omission of 1,25,000 Rupees.
Under section 80DD, to claim this omission a certificate of disability is required from prescribed medical authority. From FY 2015-16 – The deduction limit of Rs 50,000 has been raised to 75,000 Rupees and 1,00,000 Rupees has been raised to 1,25,000 Rupees.
Omission for Medical expenditure on self or dependent relative
This omission is accessible to a resident person or a HUF under section 80DDB. The omission that can be asserted is 40,000 Rupees. Such omission for an individual is accessible in regard of any costs brought about towards treatment of certain predetermined restorative ailments or sicknesses for himself or any of his wards. From section 80DDB it seems clear that for a HUF, such deduction is accessible in regard of therapeutic costs brought about towards these recommended diseases for any of the individuals from the HUF.
As per section 80DDB, in the event that the person for the benefit of whom such costs are acquired is a senior resident, an omission upto 1 lakh Rupees can be guaranteed by the individual or HUF taxpayer. Prior i.e. until FY 2017-18, the omission that could be guaranteed for a senior national and a super senior native was 60,000 Rupees and 80,000 Rupees individually. This generally implies, now it is a typical omission accessible upto 1 lakh Rupees for every single senior subject (counting super senior natives) dissimilar to prior.
Any repayment of medicinal costs by a backup plan or manager will be lessened from the quantum of finding the citizen can guarantee under this area.
Additionally recall that you require gets a remedy for such restorative treatment from the concerned master with a specific end goal to have the capacity to guarantee such derivation. Read our itemized article on Section 80DDB.
12. Section 80U
Omission for handicapped person
An omission of 75,000 Rupees is accessible to a resident person who experiences a physical handicap (counting visual deficiency) or mental impediment. If there should be an occurrence of extreme handicap, omission of 1,25,000 Rupees can be guaranteed. From FY 2015-16 – The omission furthest reaches of 50,000 Rupees has been raised to 75,000 Rupees and 1,00,000 Rupees has been raised to 1,25,000 Rupees.
Omission for donations in social causes
The different gifts determined in u/s 80G are qualified for omission up to either 100% or half with or without confinement as gave in segment 80G. From FY 2017-18 any gifts made in real money surpassing 2,000 Rupees won’t be permitted as omission. The gifts above 2000 Rupees ought to be made in any mode other than money to qualify as finding u/s 80G.
- Donations with 100% omission with no qualifying limit
- National Defense Fund set up by the Central Government
- PM’s National Relief Fund
- National Foundation for Communal Harmony
- An endorsed college/instructive establishment of National distinction
- Zila Saksharta Samiti established in any locale under the chairmanship of the Collector of that area
- Store set up by a State Government for the therapeutic alleviation to poor people
- National Illness Assistance Fund
- National Blood Transfusion Council or to any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Store for Technology Development and Application
- National Children’s Fund
- Boss Minister’s Relief Fund or Lieutenant Governor’s Relief Fund concerning any State or Union Territory
- The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
- The Maharashtra Chief Minister’s Relief Fund amid October 1, 1993 and October 6,1993
- Boss Minister’s Earthquake Relief Fund, Maharashtra
- Any reserve set up by the State Government of Gujarat solely to give alleviation to the casualties of seismic tremor in Gujarat
- Any trust, foundation or reserve to which Section 80G(5C) applies for giving help to the casualties of quake in Gujarat (commitment made amid January 26, 2001 and September 30, 2001) or
- Executive’s Armenia Earthquake Relief Fund
- Africa (Public Contributions — India) Fund
- Swachh Bharat Kosh (relevant from money related year 2014-15)
- Clean Ganga Fund (relevant from money related year 2014-15)
- National Fund for Control of Drug Abuse (relevant from money related year 2015-16)
- Donations with half omission with no qualifying limit
- Jawaharlal Nehru Memorial Fund
- PM’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- The Rajiv Gandhi Foundation
- Donations to the accompanying are qualified for 100% omission subject to 10% of balanced gross total earning
- Government or any endorsed nearby expert, organization or relationship to be used to promote family arranging
- Gift by a Company to the Indian Olympic Association or to some other told affiliation or organization built up in India for the improvement of foundation for games and diversions in India or the sponsorship of games and recreations in India
- Donations to the accompanying are qualified for half finding subject to 10% of balanced gross total earning
- Some other reserve or any organization which fulfills conditions said in Section 80G(5)
- Government or any neighborhood expert to be used for any beneficent reason other than the motivation behind advancing family arranging
- Any expert established in India to deal with and fulfilling the requirement for lodging convenience or to plan, advancement or change of urban areas, towns, towns or both
- Any organization alluded in Section 10(26BB) for advancing the enthusiasm of minority network
- For repairs or remodel of any informed sanctuary, mosque, gurudwara, church or different spots.
14. Section 80GGB
Omission on company’s contribution to political parties
Omission is permitted to an Indian organization for the sum contributed by it to any political gathering or a discretionary trust. Omission is taken into consideration commitment done by any route other than money.
15. Section 80GGC
Omission on contribution of any person to political parties
Omission under this section is permitted to a taxpayer aside from an organization, neighborhood expert and a counterfeit juridical individual entirely or mostly financed by the administration, for any sum added to any political gathering or a constituent trust. The omission is taken into account commitment done by any route other than money.
16. Section 80RRB
Omission with respect to any Income by way of Royalty of a Patent
Omission for any earning by method for sovereignty for a patent enrolled on or after 01.04.2003 under the Patents Act 1970 will be accessible up to 3 lakhs Rupees or the income got, whichever is less. The taxpayer must be an individual resident of India who is a patentee. The taxpayer must outfit an authentication in the endorsed frame appropriately marked by the recommended specialist.
17. Section 80 TTB
Omission on deposit’s interest for senior citizens
Another section 80TTB has been embedded vide Budget 2018 wherein, a derivation in regard of interest pay from deposits held by senior subjects will be permitted as an omission from the total earning The farthest point for this conclusion is Rs. 50,000. Further, no derivation under area 80TTA will be permitted. Notwithstanding area 80 TTB, segment 194A of the Act will likewise be corrected to build as far as possible for omission of duty at source on total salary payable to senior nationals from as far as possible Rs. 10,000 to Rs. 50,000.\
Section 80 Deduction Table
|Section||Deduction on||Limit allowed (maximum) FY 2018-19|
– Ample amount of PF commitment
– Installment of Life Insurance Premium
– Tuition Fee of Children
– Home credit of Principal Repayment
– Sukanya Samridhi Account’s investment
– Sum paid for buying conceded annuity
– Store conspire for multi-year
– Investment funds conspire Senior Citizens
– Subscription that is to told securities/advised stores conspire
– Informed of Pension Fund set up by Mutual Fund or UTI for contribution.
– Subscription of Home Loan Account plan of the National Housing Bank
– Subscription of store plan of a bare part or organization assumed with giving lodging fund
– Advised annuity Plan of LIC’s contribution
– Subscription for value shares/debentures of a validated qualified issue
– Subscription to told liabilities of NABARD
|80CCC||For the amount which is deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB)|
|80 CCD(1)||Contribution of employee to NPS account ( highest up to 1,50,000 Rs)
|80CCD(2)||Contribution of employee to NPS account||Highest up to 10% of salary|
|Excessive contribution to NPS
|80TTA(1)||Interest Income from Savings account||Highest up to 10,000|
|Exemption of interest from banks, post office, etc. Applicable only to senior citizens
|Highest up to 50,000|
|80GG||For paid rent when HRA is not accepted from employer||Least of :
– Rent paid minus 10% of total earning
– 5000 Rupees per month
– 25% of total earning
|80E||Education loan’s interest||Interest paid for a time period of 8 years|
|80EE||Home loan’s interest for first time home owners||50,000 Rupees|
|80CCG||Rajiv Gandhi Equity Scheme for investments in the Equities||Lower of
– 50% amount invested in equity shares; or
– 25,000 Rupees
|80D||Medical Insurance – For Self, spouse and children
Medical Insurance – Parents elder than 60 years old or (from FY 2015-16) parents who are not insured and more than 80 years old
|– 25,000 Rupees
– 50,000 Rupees
|80DD||Medical treatment for disabled dependent or payment to marked scheme for maintenance of disabled dependent
– Disability rate is 40% or
more but less than 80%
– Disability rate is 80% or more
– 1,25,000 Rupees
|80DDB||Medical expense on Self or Dependent Relative for diseases marked in Rule 11DD
– For less than 60 years old
– For more than 60 years old
|– Lower of 40,000 Rupees or the amount which is actually paid
– Lower of 1,00,000 Rupees or the amount which is actually paid
|80U||Self-suffering as handicapped:
– An individual who is suffering from a physical inability (including blindness problem) or mental issue.
– An individual who is severely handicapped
– 1,25,000 Rupees
|80GGB||Companies’ to political parties contribution||The amount which is contributed (not allowed if that is paid in cash)|
|80GGC||Contribution of people to political parties
|The amount which is contributed (not allowed if paid in cash)
|80RRB||Deductions on earning by path of Royalty of a Patent||Lower of 3,00,000 Rupees or earning received|
Frequently Asked Question (FAQ)
- Would i be able to guarantee the 80C deductions at the season of recording return in the event that I have not submitted evidence to my employer?
Answer: Verification for making speculations are submitted to the business before the finish of a Financial Year (FY) with the goal that the employer thinks about these ventures while deciding your taxable earning and the tax deduction that should be made. Be that as it may, regardless of whether you miss presenting these confirmations to your manager, the case for such ventures made should be possible at the season of recording your arrival of pay as long as these speculations have been made before the finish of the important FY.
- I have done an 80C investment on 30 April 2018. For which year would i be able to guarantee this investment as a deduction?
Answer: You can guarantee deduction for the investments that you have made in the arrival of pay for the year in which you have made the investment. In this way, in the event that you have made the venture on 30 April 2018, you will be qualified to guarantee such investment as a deduction amid FY 2018-19.
- I have benefited an advance from my employer for seeking after advanced education. Would i be able to guarantee the interest paid on such credit as a deduction under Section 80E?
Answer: A deduction on education loan’s paid interest under Section 80E is done only if the loan has been taken from a monetary institution to accomplish higher education. So, favoring a loan from your employer will not denominate you to demand the interest under Section 80E.
- Is there any limitation or highest limit up to which I can demand a deduction under Section 80E?
Answer: Law has not endorsed any furthest farthest point for making a case of deduction under Section 80E. Subsequently, the genuine interest paid amid a year can be asserted as a deduction.
- Can a company or a firm take advantage of Section 80C?
Answer: The arrangements of Section 80C apply just to people or a Hindu Undivided Family (HUF). Thus, an organization or a firm can’t take the advantage of Section 80C.
- To a private insurance company, i have been paying life insurance premium. Can I ask for 80C deduction for the premium I have paid?
Answer: Deduction under Section 80C is accessible in regard of life insurance premium paid to any safety net provider affirmed by the Insurance Regulatory and Development Authority of India, regardless of whether public or private. Henceforth, the insurance premium you are paying will likewise enable you to guarantee a 80C deduction.
- In which year would I be able to demand deduction of the stamp duty paid for purchase of a house property?
Answer: You can proceed asserting the stamp duty for buy of a house in the year in which the installment is made towards stamp duty under Section 80C.
- Can a company demand a deduction for charity made under Section 80G?
Answer: Any taxpayer making charity towards particular institutions, funds etc. will be worthy to claim a deduction under Section 80G.
- I am paying medical insurance premium for a medical policy which is taken in my name, my spouse and children. Moreover, I am paying premium on a medical policy that was taken in the name of my parents who are older than 60 years. Can I demand a deduction for both the premiums paid?
Answer: The premium which you have paid on the policy taken for yourself, spouse and children is worthy for a deduction under Section 80D up to highest of 25,000 Rupees. Moreover, you will also be worthy demanding deduction of premium paid on the policy that has been taken for your senior citizen parents a highest of 50,000 Rupees (this boundary was 30,000 Rupees) until FY 2017-18. So, you can demand both the premiums paid as a deduction under Section 80D.
- Is my FD interest released under Section 80TTB?
Answer: If you are a senior citizen aging 60 years and above, then your interest earning from a Fixed Deposit is released under Section 80TTB.
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