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

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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

    Read more about: income tax
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