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

Updated: Tuesday, January 15, 2013, 16:35 [IST]

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.