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A glance of deductions available u/s 80C to 80U

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Updated: Tuesday, January 15, 2013, 16:35 [IST]
 
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A glance of deductions available u/s 80C to 80U

The government provides certain exemptions under various sections of the Income Tax Act, to encourage investors to save and hence reduce their tax liability. The tax benefits under section 80C allow one a maximum investment of Rs 1 lakh.

Therefore, if you are in the 30% tax bracket, if you invest a maximum of Rs 1,00,000 you save Rs 30,000. Similarly, if you are in the 20% tax bracket and if you invest a maximum of 1,00,000 you save Rs 20,000. GoodReturns.in has explained the various sections with the instruments available for exemption.

* The maximum amount of deduction which can be claimed in aggregate of 80C ,80CCD & 80CCD is Rs 1,00,0000/-.

Gross total income means total income computed in accordance with the provisions of the Act before making any deduction under sections 80C to 80U.

The income of a person is computed under the following heads:
1. Salaries.
2. Income from house property.
3. Profits and gains of business or profession.
4. Capital gains.
5. Income from other sources.

Here is quick chart of deduction from total income available under section 80C to 80U of the Income Tax Act. This chart will give you a fair idea of deduction which will help you while planning your tax.

Deduction from total income u/s 80c to 80u
Sec Eligible assessee Nature of Deduction Amount
80C Indl/HUF General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc Amount deductible: Rs. 1,00,000/-
80CCC Indl Contibution to Pension funds Amount deductible: Rs. 1,00,000/-
80CCD(1) Indl Contibution by an employee or any other individual towards notified pension scheme  Amount deductible: Rs. 1,00,000/-
80CCD(2) Employees

Contibution by an employee towards notified pension scheme

Amount deductible: maximum of 10 % of salary.
80CCF Indl/HUF

Subscription to long-term infra bonds

Amount deductible: maximum Rs 20000.
80CCG Resident Individual

Investment made under equity scheme if gross total income does not exceed Rs 10 lakh.

Amount deductible: 50% of amount invested in equity shares, restricted to Rs 25,000.
80D Indl/HUF

Medical insurance premia

Amount deductible: Max upto Rs 30,000- 40,000 incase of senior citizen
80DD Resident Indl/ Resident HUF

For maintenance including treatment or insurance the lives of physical disable dependent relatives.

Amount deductible: Rs 50,000. In case disability is severe , the amount is Rs 1,00,000
80DDB Resident Indl/ Resident HUF

Medical treatment expenses

Amount deductible: Rs 40,000
80E Indl

For interest payment on loan taken for higher studies for self or education of spouse or children

Amount deductible: Entire amount of interest is deducatble for max of 8 years.
80G All assessees

Donations to charitable institution

Amount deductible: 100% or 50% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc.)
80GG Indl

For rent paid

Amount deducatble: 1). Rs 2000/- p.m

2).25% of total income
3). rent paid- 10% of total income

80GGA All assessees not having any income chargeable u/hPGBP

For donation to entities in scientific research or rural development

Amount deducatable: Sum paid as donations
80GGB  Indian companies Contribution give to political parties Amount deducatable: Sum contibuted to political parties
80GGB Assessee Contribution give to political parties Amount deducatable: Sum contibuted to political parties
80TTA  Indl/HUF

Interest in savings account

Amount deductible: Max is Rs 10,000/-
80C Indl/HUF

Income of person with disability

Amount deductible: RS 50,000 which goes to Rs 1,00,000 in case taxpayer is suffering from severe disability.

GoodReturns.in

Topics: income tax
Story first published:  Monday, January 7, 2013, 11:45 [IST]
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