What are the tax deduction or exemptions apart from 80C?

Updated: Thursday, July 17, 2014, 9:04 [IST]

Taxpayers in an attempt to lower down their tax liability have come to know about the deductions available to them for different investments made under the provisions of Sec 80C through their financial consultant or some other resource. To familiarize with other rebates available to taxpayers in the form of different deductions and exemptions for varying investments or expenses, here-forth are listed some of the other sections under which taxpayers can claim deductions subject to some conditions.

1. Section 80CCG : Also referred to as Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS), Section 80CCG allowed deductions to first-time investors in equity, mutual funds or ETFs if the gross total income of the individual does not exceeds Rs. 12 lakh. The deduction is available to the extent of 50% on the invested amount with a cap of Rs. 25,000. Rebate u/s is allowed to mobilize funds from small investors into equity markets.

2. Section 80D : Any amount paid for securing health cover for either self, spouse or children to the extent of Rs. 15,000 is exempt from any tax-liability. The benefit u/s can be claimed only by resident individuals or HUFs.

3. Section 80DD : This section provides income tax deduction to individuals or HUFs who pay premium amount to insurance companies for insuring physically disable dependents . Such individuals or HUFs are allowed a deduction of Rs. 50,000 and in case of severe disability a maximum amount of Rs. 1 lakh. For claiming the exemption, the dependent person should either be a parent, sibling, spouse or children.

4. Section 80DDB : Deduction u/s this section is available for incurring medical expenses either for self or dependents. The maximum deduction that can be claimed by resident individual or resident HUF is Rs. 40,000 or an amount actually spent whichever is less. For senior citizens, Sec 80DDB allows a deduction of maximum Rs. 60,000.

5. Section 80E : Any amount paid as interest on education loan for higher education of self or dependent is exempt from tax. The deduction can be claimed for a maximum of 8 years or until interest amount is paid off. The claim in this respect cannot be made for loans secured for part-time courses.

6. Section 80G : Donations made to any charitable institution, trust as well as qualifying educational institutions can be claimed for exemption u/s 80G in full or upto 50%.

7. Section 80GG: Individuals who do not receive HRAs from their employer can claim deduction in respect of rent paid. Under this section, maximum deduction allowed is 25% of total amount, rent amount equivalent to Rs. 2000 or rent paid less of 10% of total income whichever is less.

8. Section 80GGC : All assesses except for Indian companies who make contributions for electoral trust or for political party can claim exemption.

9. Section 80 TTA : Individuals and HUFs can claim tax exemption for interest earned on saving amount to the maximum amount of Rs. 10,000 in one year. The exemption u/s is not allowed for fixed or time deposits.

10. Section 80U: Individuals and HUF taxpayers can claim deduction u/s 80U only in case they suffer from some physical disability of not less than 40%. Maximum exemption allowed u/s Rs. 1 lakh.

So, apart from Sec 80C following other sections of the Indian Income Tax provide you tax relief in different circumstances.

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